Scout Motors delays production due to ‘technical issues’: report – Jalopnik

Anyone who pre-ordered a new Scout will have to wait a little longer for the keys to their new ride. Per our friends at the Drive, a report from the German Der Spiegel claims that the automotive startup that Volkswagen officially relaunched in 2022 plans to delay the start of production until the summer of 2028, and not until 2027 as Scout Motors had originally planned. As far as production delays go, a year isn’t that bad, but it’s also not the best sign, especially when it comes to an automotive startup still working on its first production vehicle.

As to why Scout is cutting production, Der Spiegel’s report doesn’t provide many details, but it does mention “technical difficulties” and financial pressure. Scout has also yet to confirm the delay, telling Der Spiegel: “We currently have no update to our timeline or product plan to share.” Whether that means Der Spiegel’s reporting is incorrect and production is still on track to begin in 2027, or whether it’s simply not something Scout wants to talk about yet, at least for now, I’m inclined to believe the paper with a long track record of accurate industry reporting.

While we don’t know exactly what ‘technical issues’ the development team is dealing with, the range extension option that proved so popular with pre-orders is apparently a particular problem for Scout. Due to packaging limitations, Scout opted to attach the range extender to the rear of the truck, and that job wasn’t easy. It turns out that hanging an entire engine over the rear axle is not exactly ideal for driving behavior.

As for financial pressures, Republican-backed tariffs in the US reportedly cost parent company Volkswagen billions of dollars last year and led to a 50,000-unit drop in US sales year-over-year. In fact, sales here have been so bad that Volkswagen CEO Oliver Blume admitted in a recent interview that he had given up on his goal of reaching a 10% market share in the U.S. for all Volkswagen brands. Add to that the Trump administration’s attempts to destroy the EV industry in favor of enriching oil and gas executives who donated heavily to his campaign, and Volkswagen’s U.S. project doesn’t look like it’s turning around anytime soon.

In some ways, you could argue that Volkswagen’s struggles in the US make Scout’s launch even more important for the company, but before that can happen, it must complete construction of a $3 billion factory in South Carolina. At a time when finances are tight, that’s a serious expense, and assuming the first Scouts are truly delayed, Volkswagen will now wait another year before it starts to recoup its investment, if not longer.

As cool as the Scout Terra and Traveler are, we hope Volkswagen can figure out a way to get this startup off the ground without being forced to throw in the towel. But will that work? That certainly remains to be seen.