In a significant move, Volkswagen's Scout Motors has revived the classic SUV brand as an electric off-roader, with a $1 billion investment aimed at the US market. The pioneering brand, which was acquired by VW in 2020, has been reborn as an electric vehicle company, with two new vehicles - the Traveler SUV and Terra pickup truck - set to debut in 2027.

The electric off-roaders will be built in the USA, with a focus on affordability, priced under $60,000 before incentives. Scout Motors is emphasizing mechanical, tactile controls, distinguishing itself from other electric vehicles with touchscreen-centric designs. The company's CEO, Scott Keogh, has highlighted the brand's heritage, stating that Scout "sort of invented the segment."

VW's investment in Scout Motors is part of its broader electric vehicle strategy, which includes a joint venture with Rivian, another electric vehicle startup. The German automaker has committed to investing up to $5 billion in Rivian, with plans to introduce vehicles developed from the joint venture in the second half of the decade.

The revival of Scout Motors as an electric off-roader marks a significant shift in the automotive industry, as traditional brands adapt to the growing demand for electric vehicles. With its focus on affordability and off-road capabilities, Scout Motors is poised to make a significant impact in the US market, competing with established players like Jeep and Ford Bronco.