Volkswagen-backed startup Scout Motors broke cover just a few months ago, and at this week’s CES 2025 in Las Vegas, Nevada, they maintain the glory of being one of many solely American automakers with a presence on the present.
That’s not the one factor that stands out about Scout being right here, although. In a sea of screens, AI, and voice assistants, Scout is sticking to a much more traditional method with its two automobiles, the Traveler SUV and the Terra pickup. Meaning common previous door handles, not ones that magically come out of the facet of the automotive, in addition to non-compulsory gas-powered vary extenders on each automobiles. And it means buttons — a lot of buttons — at a time when many main automakers appear to assume bodily toggles, levers, or knobs are passé.
Scout’s not anti-tech. In any case, its automobiles might be among the many first to make use of the software and electrical structure from the newly fashioned three way partnership between Rivian and Volkswagen. Quite, this method is in line with the corporate’s lineage as a mid-Twentieth century auto model.
The shadow of Volkswagen looms giant over Scout’s efforts. Will the German big actually stand by and let a brand new American offshoot sink or swim, or is it standing by like a anxious mother or father? For what it’s price, Volkswagen Group CEO Oliver Blume defended the selection to let Scout chart its personal course at an occasion on the sidelines of CES 2025, saying he was decided to carry again an “American icon.”
Scout Motors CEO Scott Keogh has taken that independence and run with it. The previous head of each VW America and Audi of America sat down with TechCrunch on the present to share what it’s wish to run an automotive startup, how he plans to maintain prospects when the automobiles hit the highway in 2027, and, in fact — his philosophy on buttons.
This interview has been edited for size.
You may have run some fairly storied manufacturers, Audi of America being considered one of them. Give me three huge variations between operating what’s ostensibly a startup versus operating a extra conventional automaker like that.
I believe Scout is storied as effectively. We’re going to make it extra storied after we’re completed with what we’re doing.
I believe the primary one is, look, you can be utilized to having a giant operation behind you, and lots of people to do a number of issues. Once we began, we had mainly no payroll system, we had no firm automotive program, and it was me. So, primary, while you flip behind you to see who was there, it was simply you, and also you needed to go determine it out and go do it, and go from there.
I believe the second factor is you’re actually serious about your survival nearly every day. And I believe at a traditional, conventional firm, it’s going to run, it’s going to be there. Right here you’re serious about survival, and what’s going to be subsequent, and the place can we get the subsequent funding from, and the place the subsequent thought is coming from.
The third one is truthfully a liberation, proper? As a result of with operating storied corporations, you might have storied machines moderating this huge factor. It’s fairly liberating when you’ll be able to provide you with concepts and see it actually executed, and possibly not should make 400 PowerPoint slides and current at 18 totally different board conferences. So there’s a liberating facet. There’s additionally the panic facet of being on their own, however I’m loving it.
From what I’ve seen, It seems like a really, possibly not absolutely developed, however a reasonably developed set of automobiles. Are you able to inform me about the place within the course of you might be, how a lot you count on to vary, and the way a lot work went into attending to a close to absolutely developed level earlier than you truly confirmed issues off to the world?
As Scout, we needed to be a linear, pragmatic, simple model, so we’re not followers of, like: “Right here’s some loopy idea automotive,” after which it’s by no means gonna see the sunshine of day, and there’s a complete disconnect. We needed to be just a little bit old-school and, like: “Right here’s what we’re exhibiting, right here’s what we’re making.” In order you discovered, we’re fairly far alongside. We have now precise mules out on the highway. We’re testing for noise, we’re testing for sturdiness. We’re getting the mileage on the market, significantly within the suspension, the drive items and all of that.
So yeah, we’re actively testing, actively [testing] sturdiness, actively validating, as we converse. And in addition we’re marrying the product to manufacturing. That’s the place we’re stepping into all of the workability points, all of the manufacturability points, and all of that. So yeah, it’s actual, however that’s what we needed to be at Scout. We didn’t wish to present some dream that was nonsense and never have it present itself in an actual product. We wish to be pragmatic and straight.
Is there something totally different about that strategy of ironing the whole lot out in comparison with the method you’d have taken with a bigger automaker?
I believe a number of the substantial stuff is sort of related. Validation is validation. You must put the miles on the automotive. You must make certain the whole lot works, testing for the character that you really want within the automotive when it comes to noise and harshness and the whole lot else.
Traditionally, as you recognize, I used to be operating an American gross sales outpost of a European division. So to get the pipeline into engineering and into the manufacturing facility would clearly be just a little bit slower. Right here, the whole lot is tremendous direct and tremendous quick as a result of, frankly, a lot of them [are] in a room identical to this, and we’re all inside 20 to 30 toes of one another, which is one thing I actually like — you could get one thing occurring within the mule, or occurring with the client response, and immediately take motion on it, which is nice.
Now there’s a draw back of that. You must watch out to not take each impulse and spin the complete group, as a result of what we don’t have is additional individuals. It is advisable to choose a path and execute on it. If you happen to begin to spin, that slows down. It will get individuals disoriented. So it’s a essential factor about when to take motion on the impulses that we’re seeing, however a lot quicker, rather more direct typically.
What Scout is presenting to the world feels extra purposeful than a number of the opposite electrical car startups we’ve seen come out during the last couple years.
What goes into that? How do you steadiness that with the pace that you just function at — making an attempt to just remember to’re targeted on these prospects that you just’re going to finally have — versus combating these impulses?
I believe you’re precisely proper. I believe we had two issues balanced. I believe one factor we undoubtedly felt the burden of restoring an icon, and by restoring an icon, we knew there was a legacy, and we knew there was an terrible lot of people that held this legacy true and pricey. And we didn’t wish to half-bake it. We didn’t wish to be disingenuous and do some wallpaper train and never make an actual automotive of affection and character. So we had that towards us.
And you then’re proper, we had a goal profile. We had a goal buyer. We needed to verify we constructed a automotive to them, and we requested a number of the powerful questions. However I believe the primary factor we needed to do was make certain this automotive had credibility. And I believe you’ve seen it with the physique on body. I believe you’ve seen it with the stable rear axle. I believe you’ve seen it with the, let’s say, matter-of-fact engineering with regard to the door handles and switches and issues like that. And I believe that performs each methods. I believe it performs to the heritage of the unique model and it performs to this American second.
However you’re proper, whether or not it’s the UX that you could be or might not see as we navigate this factor, or the vary extender that we augmented onto the essential engineering factor, we 100% take heed to the old-school world of Scout and the shoppers who we’re making the automotive for. Truthfully, all of it obtained confirmed after we did the disclosing in Tennessee. Individuals stated: “yeah!”
So I believe you’re proper. If you happen to construct it round a buyer and also you construct it round a model thought, stunning issues can occur, versus… yeah, simply form of spinning round, completely.
What’s your plan for caring for these prospects as soon as these automobiles hit the highway?
I believe you’re proper. I’ve, in my thoughts, already been kind of trying previous the section of… now we have a very good automotive, it’s going to get engineered effectively. We have now a manufacturing facility we’re within the strategy of constructing, and I’ve few doubts we’ll get it ramped up. There’ll be challenges, enormous ones, and we’ll get it there.
I believe initially what you have to do is make investments. You must spend money on the infrastructure to maintain prospects, and that takes an terrible very long time to arrange, whether or not it’s warehouses and the flexibility to ship elements, whether or not it’s the logistics to have the ability to make certain the automobiles and elements and technicians can get there, the coaching for the individuals to restore the automobiles, and the whole lot else.
So in my thoughts, the way in which I have a look at it’s, one, as you recognize, we might be a direct to client model. We are going to construct, instantly, the connection. That enables them to purchase the automotive transparently. It permits them to purchase the automotive with tremendous no-hassle, super-speed, as a result of we’re orchestrating the complete course of round that.
The opposite factor when you cross that’s how we service the automotive. I believe initially, we’ve been speaking just a little bit in different conversations in regards to the structure of the car, however initially, we’re going to have the ability to do quite a bit to replace the automobiles and maintain them in control remotely.
The second factor, we will do an terrible lot of issues within the driveway itself. We’ll carry technicians, we’ll come to your own home and make the repairs and do it. And the third one is the funding. So we’ll construct out an infrastructure the place we will show the automobiles, and promote the automobiles, but in addition restore the automobiles.
I believe the opposite factor additionally, now we have to be pragmatic and simple. We is not going to be 100% in each neighborhood in America, 50 states, proper off the bat, we wish to construct it up. We’re solely going to maneuver to a different market after we correctly deal with the markets that we’re in.
However you might be proper. Nothing will drop the Scout model quicker than “I really like this automotive” and also you drop the ball on elements availability. You drop the ball on skilled technicians with the ability to repair it. You drop the ball on maintaining your guarantees. I’m assured we’ll do all that, however now we have to speculate to do it, and that’s what we’re doing. It’s in our enterprise case, it at all times has been. However I’m with you. The end line shouldn’t be the automotive coming down the road. The end line is well past that.
You talked about direct to client, and now that you’re out within the public speaking about what you’re planning on doing, you’re going through challenges. You may have states which are providing you with some pushback on the direct to client gross sales mannequin. What share of your mind does that occupy? How a lot time do you and the corporate commit to having to work out that specific downside, and what do you say to persuade these those who your means is the proper means?
Yeah, I don’t assume you say a lot. I believe you execute. And I believe one of the best ways to do this is to have a buyer undergo the method, have a buyer do it, and have a buyer say this factor’s unbelievable and sensible. I’m a giant fan of say much less, and execute, and do it actually, rather well. What we do know no doubt, there’s a huge urge for food amongst the American inhabitants for doing this effectively and doing this proper.
By way of my time — look, my time is occupied by hundreds of little issues and gigantic issues, and it’s at all times shifting. It’s at all times there. Clearly, now we have a whole division of our firm that’s doing precisely that, and now we have guys which have conventional expertise in logistics and warehouse stocking and circulation and all of that. We have now a number of guys who’ve phenomenal, phenomenal expertise on the direct to client entrance. After which, as you stated, there’s a giant logistical angle. There’s a monstrous paperwork angle about the way to deal with that. And it’s an advanced factor, transacting a automotive, and signatures, and all of the issues that include it.
However the great point is, you might have expertise now the place you aren’t constructing off of an archaic structure and also you’re making an attempt to place a layer on that factor. You’re constructing the complete structure with the categorical technique of executing this. And that’s, one, it opens the thoughts and, two, it opens the chance. So it’s a portion of my time, however actually not 100%, I’ve obtained a number of issues happening.
I’d say the primary factor is, to return to the purpose you had been making beforehand, is I’m targeted on this neighborhood, as a result of I do know these reservation holders are going to change into our ambassadors on the market, and that’s what I spend a number of time on. How can we do that proper so we construct a neighborhood? And types that try this effectively — and I believe we will in all probability all title actual neighborhood oriented manufacturers — they succeed, full cease.
Do you count on a few of these homeowners to actually take up that struggle? I imply, I keep in mind Tesla within the early days, it was Tesla homeowners who had been calling their representatives ensuring that these issues modified. It didn’t work in each state, however they had been on the market in entrance of the struggle. Do you count on the identical factor will occur with Scout reservation holders?
Look, I believe our reservation holders will get in entrance of the struggle on all fronts. However truthfully, it’s not my job to mild that spark. My job is to proceed to speak, inform the story, and for those who attempt to pressure it, it’ll by no means occur, as a result of it’s not natural. If it’s one thing they imagine in, effectively, they’ll increase their palms and so they’ll try this. So I believe 100% we’ll construct a neighborhood that’s behind the whole lot that we’re doing, from nice jobs in South Carolina, to the expertise within the automotive, to promoting in 50 states, and on and on.
The neighborhood was a giant push behind leaping into the vary extender. And, you recognize, Scouts mainly exit into the world. And once they exit to the world, they take heed to what’s happening, whether or not they’re listening to nature, they’re listening to traits, they’re listening to indicators, and that’s what we’ll do as effectively. However what motion the patron takes? The patron will make that call. I believe they’ll be behind us big-time.
The vary extender is such a captivating thought. I perceive why everyone’s curious about it. Was that one thing that got here alongside midstream, or was that one thing that you just had been serious about early on?
We had it on the again burner. At all times was one thing we had been kind of serious about.
There have been lots of people who stated, “I really like Scout. How about fuel?” So it was at all times in our minds, after which possibly, nine-ish, 12 months in the past, we stated, “let’s check out it.” Early section idea engineering crew jumped on it. Inside about 90 days, they put a very sensible proposal on the desk. And after we checked out it, we stated, “it’s excellent,” as a result of we didn’t promote our soul. The platform stays equivalent. Whether or not it’s an EV platform or extended-range. After which for manufacturability, it’s the identical precise manufacturing.
So as soon as I noticed that resolution the place we didn’t should promote our soul, and you would nonetheless get a Scout. All the nice means continues to be there, all of the packaging continues to be there — that’s an ideal resolution.
And what you see, truthfully, is a number of this has to do with feelings, let’s say, and lack of belief. And the moment you go to somebody who’s like, “I hate EVs. EVs are horrible. That’s the tip of the world”… however then they wish to hear about it. They simply drop the guard. And as soon as somebody drops their guard, effectively, you then’re open for a dialog.
The factor that shocked us, truly, is even from full-blown EV fanatics, they’re saying, “you recognize, a few occasions, it wouldn’t be the worst factor on the planet to have just a little backup generator.” However in our minds, what we’ve seen is market enlargement by 30, 40% by having it. In order that’s enormous in our enterprise.
I do know that you just’ve talked about this quite a bit earlier than the disclosing of your automobiles and even after, however there’s this kind of splitting within the business between, can we go full touchscreen? Can we go buttons?
Oh I’m clear on this one.
Yeah, you guys are clearly on the facet of buttons. However BMW unveiled its new UI this morning (at CES). They’re nonetheless fairly squarely on crew “fewer buttons.” Why is that so essential to you guys?
I believe it’s essential. On BMW, I believe BMW will do what’s proper for them and their prospects. However for our prospects, and what we’re doing, 100% that is the way in which to go.
I’ve this kind of factor the place automobiles have change into too disconnected. They’ve change into disconnection machines. They’ve change into just a little bit dystopian. And I believe the massive factor we imagine is we wish to construct this connection machine. It’s why we put a bench seat within the automotive. It’s why we put the old-school cut up tailgate. It’s why now we have that huge cabana roof that you just’ve seen. And I believe no doubt, this reality of getting a literal connection works, and prospects prefer it. All of the analysis has instructed us that, and all of the reactions instructed us that.
It’s kind of like strolling on this room. Do you wish to simply hit the sunshine swap and switch the sunshine on? It’s labored for 100 years. It’s tremendous linear. It’s tremendous direct. Or do you wish to say, let me go within the room and seize my telephone and seize my app and say, let me flip the lights on. No.
Door handles. That’s one other traditional. We’re constructing an out of doors automotive. We’re constructing a automotive of “can do,” and I’ve seen it time and again. Individuals say I wish to be in management. I wish to do issues. Generally it’s so simple as a swap, and even the differentials and the whole lot else. We wish prospects to be engaged within the automobiles. It matches the model. I believe it’s proper. And the response has been enormous.
There’s a world of Tesla, which is an superior world. They undoubtedly stated, “all these buttons are a ball of nonsense, we’re going to simplify one display screen to rule all of them.” Implausible. However then everybody adopted. So I’m not a fan of 1 utility is the proper one for all manufacturers. We’re Scout, and what our prospects need is to return to this connection.
I imagine in it strongly, as a result of I believe social media has made us disconnected, politics has made us disconnected. If you happen to can construct a automotive and construct an setting — even when it’s as minuscule as a swap — that will get us again to this connection, that’s good.
I believe it’s cool. People are craving for this. And I believe it’s proper for the second, and proper for our model.
Buttons will save the world.
Buttons will save the world.
CES,electrical automobiles,EVs,interview,Scott Keogh,Scout Motors
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