Scout on CBS Saturday morning today! [Watch the video segment]

[drwing]

I agree, people bailing when we're still two years out and an unstable political climate, which sadly could impact production of these vehicles. We can't continue to bury our heads in the sand that this company is up against some serious uphill battles but I'm completely pulling for Scout!

Exactly. Keogh deserve a lot of credit for his messaging given the circumstances.

 

[E90400K]

I feel for Scott Keough having to tapdance around the political and economic situation here. If tariffs end up increases the price of new vehicles by $12k as some predict (and EV tax credits disappear) Scout might find itself in some peril. I'm sure many others feel differently but if/when the price increases twenty grand, I'm out. Being backed by a large European company could help, or hurt. Who knows? Also not great is Scouts competition being marketed on the front lawn of the Whitehouse by POTUS. What a mess!

[A business perspective - not political commentary]

If the the build plan holds true, built in S. Carolina with 85% US content, then I doubt tariffs, even if they are in effect in 3 years, would impact the Scout pricing. In fact I'd say, if the tariffs are still in place, it will be to the Scout's favor. One of Scout's main themes is to re-onshore production of American vehicles, which aligns with the stated White House goals. Perhaps the company will get incentives from the Feds to up the part content above 85%.

The good news is Scout has a lot of headroom in time to change its plans to take advantage of tariffs (if the tariffs will still be in place in 3 years.)

 

[Mousehunter]

Not really worry about tariffs. With more than 2 years before the first sales, it is impossible to predict where policy will be. But that said, Scout is already focused on domestic content - they are likely to be less effected than most of the automotive industry.

While the administration has not been pro EV, they have not suggested much past leveling the playing field. There are a LOT of potential EV sales that have been lost because of the hate against credits. That said, it is hard to guess how long the existing hate will simmer before it stops being an issue for those people.
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I think the main thing is they need to make a quality product that their market niche wants. That might not guaranty success, but not doing it might all but guarantee failure.

Personally, the failure of many companies to produce a quality EV worries me more. But starting with a proven software architecture is good. Then it is up to Scout to make the hardware. Vehicles are complicated. I know they have the background to pull it off, hopefully they have the time and the drive to do it. The last thing they can afford is teething trouble like Ford had. But starting with a clean slate - I want to be optimistic.

 

[drwing]

[A business perspective - not political commentary]

If the the build plan holds true, built in S. Carolina with 85% US content, then I doubt tariffs, even if they are in effect in 3 years, would impact the Scout pricing. In fact I'd say, if the tariffs are still in place, it will be to the Scout's favor. One of Scout's main themes is to re-onshore production of American vehicles, which aligns with the stated White House goals. Perhaps the company will get incentives from the Feds to up the part content above 85%.

The good news is Scout has a lot of headroom in time to change its plans to take advantage of tariffs (if the tariffs will still be in place in 3 years.)

That's not how markets work. Steel and aluminum will cost Scout the same regardless of county of origin. If there is a 25% tariff on steel and aluminum then US producers get a 25% bump up in price. Tariffs are good for domestic producers, bad for downstream manufacturers and consumers. Long term (5-10 years) domestic producers could increase capacity and utilization, which MIGHT bring prices back down. However, if this is just a negotiation tactic and tariffs will be gone in a few years, why would domestic producers invest the $billions needed to increase output?

Scout claims 80% of the parts will be sourced from North America, including Canada and Mexico. For example, the VW EA888 engine plant is in Mexico. Needing to change those supply chains at this stage would likely result in years of delays, if not ending Scout all together. Decisions are made well in advance of production. They don't have much time. I'm sure all kinds of specs and features are on the chopping block right now in an attempt to hit their price target.

 

[Bkenyon53]

I'm sure all kinds of specs and features are on the chopping block right now in an attempt to hit their price target.

Honestly, I'd much rather a "pick and choose" from a laundry list of options to add/delete to keep pricing lower than having package levels. I hate paying for a full package of options when I only want one thing in it.

Hate to take it back to Jeep but when I purchased my 2018 Rubicon, the real "package" was the trim level (Sport, Sahara, Rubicon) and then you could add only what you wanted with minimal options being included in a package. Now if you want painted fenders on a Rubicon, it's a $12K add-on to bump up to the Rubicon X package. (Obviously if that's all you want you just buy them aftermarket and paint yourself) but from the factory, that's the cost because you can only get them with the fully loaded model.

 

[drwing]

Not really worry about tariffs. With more than 2 years before the first sales, it is impossible to predict where policy will be. But that said, Scout is already focused on domestic content - they are likely to be less effected than most of the automotive industry.

While the administration has not been pro EV, they have not suggested much past leveling the playing field. There are a LOT of potential EV sales that have been lost because of the hate against credits. That said, it is hard to guess how long the existing hate will simmer before it stops being an issue for those people.
---
I think the main thing is they need to make a quality product that their market niche wants. That might not guaranty success, but not doing it might all but guarantee failure.

Personally, the failure of many companies to produce a quality EV worries me more. But starting with a proven software architecture is good. Then it is up to Scout to make the hardware. Vehicles are complicated. I know they have the background to pull it off, hopefully they have the time and the drive to do it. The last thing they can afford is teething trouble like Ford had. But starting with a clean slate - I want to be optimistic.

Honestly, I'd much rather a "pick and choose" from a laundry list of options to add/delete to keep pricing lower than having package levels. I hate paying for a full package of options when I only want one thing in it.

Hate to take it back to Jeep but when I purchased my 2018 Rubicon, the real "package" was the trim level (Sport, Sahara, Rubicon) and then you could add only what you wanted with minimal options being included in a package. Now if you want painted fenders on a Rubicon, it's a $12K add-on to bump up to the Rubicon X package. (Obviously if that's all you want you just buy them aftermarket and paint yourself) but from the factory, that's the cost because you can only get them with the fully loaded model.

Oh God! Don't get me started on Jeep. Their lineup is a nightmare. They have something like seven trims, 2drs, 4drs, pick-up, ICE and that ridiculous 4xe. While shopping for my wife's Pacifica I considered getting a Gladiator. Unfortunately the maximum tow rating is only available in Sport and Sport S. What is completely insane, that max tow rating didn't automatically come with the Max Tow package. It also needed a different gear ratio which wasn't getting listed on spec sheets. You had to look it up using the vin.

Based on our experience with the Pacifica UX, I can safely rule out any newer Stellantis product. That doesn't mean I'm willing to overpay for a stripped down Scout though. I just won't buy a new vehicle anytime soon. All auto manufacturers will probably get hit hard but I fear Scout is particularly vulnerable. There is no room for error. Scott Keogh seems to understand the situation, which gets back to my original comment.