VW’s rugged Scout electric SUV and pick-up brand to be developed by the same outfit that builds the unstoppable Mercedes-Benz G-Wagon

Volkswagen has inked a deal with Austrian off-road specialist Magna Steyr to help it develop it next-generation all-electric SUV and pick-up that will be launched under the iconic Scout brand.

The deal, reportedly worth €450 million ($A750m) was unearthed by Austrian newspaper, Kleine Zeitung, and will see Magna engineers develop the SUV at its Austrian base in Graz and within the US with both vehicles set for a launch in late 2026.

Replicating what Magna Steyr did for INEOS Automotive with its Grenadier, work is already said to have begun on both the SUV and pick-up.

No further details have been released by either party but it’s thought the Scout SUV and pick-up will ride on a toughened-up version of the Volkswagen Group’s inbound Scalable Systems Platform (SSP.)

Another more expensive option is that Volkswagen will green light the development of a bespoke ladder-frame chassis that will provide the durability and payload currently delivered by the toughest in the class.

According to the Austrian newspaper Magna will not build the new Scout models on behalf of VW, instead they will be assembled at the car-maker’s all-new factory that will be built near Columbia in South Carolina in the US.

Once up and running Volkswagen hopes it will build and sell 200,000 Scouts annually.

Volkswagen has admitted that the Scout models will be specifically catered to US buyer’s tastes but hasn’t ruled out export to other global markets.

When introduced in 2026 the Scout pick-up will have a real fight on its hands against the likes of other electrified utes and rugged SUVs such as the Rivian R1T and R1S, GMC Hummer EV, Ford F-150 Lightning, Chevrolet Silverado EV and Tesla Cybertruck.