Scout’s Gas Gamble: VW’s Mexico-Built Engine Powers Its Electric Future

• Scout Motors' electric vehicles will include a range-extended gasoline motor produced in Mexico, offering up to 500 miles of overall range.

• The system is not a hybrid—it's a generator-type range extender, giving Scout EVs long-range capability without direct engine drivetrain.

• VW is wisely using its North American supply chain, positioning Scout to benefit from U.S. tax credits and reduced production costs.

For a brand built on diesel frugality and now investing heavily in electric cars, Volkswagen is taking an eyebrow-raising gamble—injecting its all-electric Scout brand with a shot of gasoline. Not to propel the wheels themselves, mind you, but to give the battery pack a range extender. Yes, Scout's next off-road explorers are going hybrid. technically.

Scout Motor, VW's bold rebooting of the rugged American legend, just released that its subsequent EVs—the Terra pickup and Traveler SUV—will offer range extender models with gasoline motors. They are produced in Silao, Mexico, and serve as onboard generators to provide the all-electric platform with endurance for long drives. And no, this is not some short-term tech holding pattern until they figure out battery chemistry—this is in the plan.

2025 Scout Terra Image Gallery

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A Throwback That Thinks Ahead

For a nostalgia brand, this strategy is a welcome step into the future. The Scout range will combine battery-electric propulsion with internal combustion backup, in a path that follows the trail blazers BMW (i3 REx) and GM (Chevy Volt). While those early attempts made a mea culpa around the gas engine, Scout is welcoming it as part of a dual-solution strategy: zero-emissions capability for short daily jaunts, and long-range reliability for overlanders.

"The system gives customers peace of mind for long journeys, especially in rural areas," a Scout spokesman said.

This is not a cover for a plug-in hybrid. The four-banger, naturally aspirated engine will not drive the wheels—it will simply generate power when the battery runs low. It's an old-school range-extended EV (EREV), with Scout promoting up to 500 total range, with 150 of those miles traveled purely electrically.

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Quick Look: Scout EV Range Extender Setup

Why Mexico?

The decision to source engines from VW's Silao factory is not just driven by cost. It's strategic. The factory already makes powertrains for other VW Group models and is near Scout's new $2 billion factory in Blythewood, South Carolina, where final assembly will take place. It's a classic case of North American vertical integration, and for a new EV brand, that's an important edge in supply chain management.

Add some U.S. tax credit incentives through the Inflation Reduction Act—that benefit domestic or "friendly country" sourcing—and you get a better picture: Scout is positioning its manufacturing to optimize incentives, minimize logistics headaches, and introduce vehicles that can scale up rapidly.

2025 Scout Traveller Image Gallery

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Not Your Average Electric SUV

Whereas the square, old-fashioned looks of Scout's are squarely aimed at Wrangler and Bronco enthusiasts, the drivetrain is playing a different game. It's not attempting to out-Tesla Tesla. Instead, it's building a useful electric off-road truck for people who have to top off in the woods, not just Whole Foods.

And here’s where it gets interesting: Scout claims 0–60 in 3.5 seconds for its flagship trim. That’s not just fast—it’s performance EV territory. So you’ve got a vehicle that looks like it belongs at a campsite, with speed credentials that wouldn’t embarrass a performance crossover.

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Final Thoughts: Pragmatism Over Purity

In a world where complete electrification is viewed as binary—you're in or you're out—Scout's hybridized approach feels like a breath of fresh air. It's not a middle-of-the-road compromise between ICE and EV; it's a risk-reward gamble that customers want range freedom without sacrificing electric intent. It's a recognition that the charging infrastructure, particularly rural America, still has miles to go.

Scout is not peddling compromise. It's peddling capability—bundled in nostalgia, built with modern technology, and offered with the kind of logistical acumen VW has historically been absent from its EV efforts.