Get all your news in one place
100’s of premium titles. One news app. Zero ads. Just $10 per month.
Benzinga

Volkswagen Seeks To Pull A Ford With EV Focused Company In US Amid Tight Race With Tesla: Report

German automaker Volkswagen AG (OTC:VWAGY) is leaving no stones unturned in gaining a foothold into the lucrative U.S. electric vehicle market.

What Happened: Volkswagen is working on launching "Scout," a dedicated EV company in the U.S. and its supervisory board will vote on the proposal as early as Wednesday, TechCrunch reported, citing sources familiar with the plan.

The Scout name takes after International Harvester's iconic Scout off-road vehicle that was produced between 1961 and 1980. The unit will produce an EV pickup truck and an off-roading SUV by 2026, the report noted.

Volkswagen plans to sidestep competition in the pickup truck space by focusing on a smaller C-segment truck that is comparable to the Ford Motor Company (NYSE:F) Maverick, TechCrunch reported.

Ford and Rivian Automotive, Inc. (NASDAQ:RIVN) have already launched their versions of EV pickup trucks — the F-150 Lightning and RIT, respectively. Tesla, Inc.'s (NASDAQ:TSLA) much-awaited Cybertruck could land in 2023. General Motor Corporation (NYSE:GM) has its own version in the works.

Volkswagen is reportedly looking to invest $100 million to set up the new company and then plow in more money later.

The Scout brand will have its own platform that is designed for off-road, higher clearance vehicles, according to the report.

Related Link: Is Tesla R&D Budget Really Much Lower Than That Of Volkswagen, Ford Or GM? Here's What Elon Musk Thinks

Why It's Important: Volkswagen has been harboring tall EV ambitions and the Scout brand is seen as a key step to set up the company for EV leadership by 2025. The company is also aiming to double its U.S. market share to 10% by the end of 2030.

Among other initiatives to boost the company's U.S. EV market share is the planned introduction of a long-wheelbase passenger model of the ID Buzz in North America by 2024, TechCrunch noted.

Volkswagen CEO Herbert Diess suggested at the "FT Future of the Car 2022" conference that Tesla has progressed quite swiftly and the race for EV leadership is getting tighter.

Volkswagen OTC shares closed Tuesday's session mostly unchanged at $20.08, according to Benzinga Pro data.

Related Link: Qualcomm Inks $1.04B Automated Driving Chip Supply Deal With Volkswagen: Report

Photo: Courtesy of Volkswagen