VW's next move: US-built, ladder-frame trucks
Volkswagen is weighing a push into rugged SUVs and pickups to revive its sluggish US performance. As Oliver Blume put it, there are "profit pools still not played by Volkswagen Group, especially rugged SUVs and pickups," adding, "And there, you know about the activities in Scout, but more than this."
These vehicles use ladder frames - generally called body-on-frame in the US - a truck-style layout suited to towing and real off-road work. That would drop VW straight into America's most entrenched truck turf, where Ford's F-Series is a constant top seller and GM, Ford and Stellantis's Ram rule the full-size arena. Toyota has built heft in midsize and off-road niches with the Tacoma and 4Runner, and models such as the Jeep Wrangler and Ford Bronco define the category.
VW says it lacks ladder-frame offerings, although the group does use that construction for the Volkswagen Amarok pickup. There's nothing in Audi's range that matches this format. Blume indicated the company would build such vehicles in the US.
Why now: market share, margins and tariffs
Volkswagen's urgency is rising as its once-reliable China profits fade. After that, last week Volkswagen secured support from labor leaders in Germany for a sweeping overhaul, concluding months of tense talks; the plan will double worldwide job cuts to 100,000 as profits soften, partly due to costly German operations.
Arno Antlitz, the CFO, highlighted the weakness of VW's current US setup. The Jetta sedan and the Taos compact SUV make up meaningful volume, but "you don't need much fantasy" to see thin margins when those models come in from Mexico under today's tariff framework. For the core Volkswagen brand, he said it is "too early to make an announcement," but the company is pivoting into segments "which are more promising in terms of margin." A company spokesman declined to comment on detailed US plans.
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Local production would also blunt tariff pain. The company views duties as a major headwind for its US business. For years, the US has imposed a 25% tariff - known as the "chicken tax" - on many imported light trucks, which strengthens the argument for building them in America and easing dependence on lower-margin Mexican imports.
The competitive wall VW must climb
This is a tough neighborhood. Pickup buyers are notoriously loyal to their brands, and challengers have had a hard time loosening Detroit's grip on the biggest truck classes. At the same time, plenty of mainstream buyers have gravitated to smaller, car-based SUVs like Toyota's RAV4 and Honda's CR-V that typically sip less fuel than heavier body-on-frame machines. Those truck-based designs do have clear advantages for towing and genuine off-road use that crossovers usually cannot match.
Where Scout Motors fits in - and what to watch for your money
VW's thinking lines up with its reboot of electrified off-roaders under Scout Motors. Scout is building a factory in South Carolina and targets 2028 for sales of two body-on-frame models, the Terra pickup and the Traveler SUV. That plant gives Volkswagen a fresh US production foothold for the very vehicles Blume is eyeing. He stopped short of stating if future Volkswagen or Audi models will use Scout technology or be produced at that facility.
The bigger picture: Blume is shifting away from a one-size-fits-all global lineup toward vehicles built for local tastes, with the US focus on pricier trucks and SUVs. If Volkswagen follows through with US-made ladder-frame models, it is aiming at fatter profit pools while cutting tariff exposure. The risk is obvious too: entrenched rivals, strong loyalties and a customer tilt toward smaller, thriftier SUVs. For your wallet, keep an eye on concrete model reveals, pricing and where VW chooses to assemble them - those will show how serious this reset really is.
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