Kia EV5 For Canada, Scout Pre-Orders Heavily Favor PHEV Option

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Policies have consequences, and nothing illustrates that fact better than two EV stories in the news today. Kia has announced the EV5 — a midsize electric SUV that should be right in the sweet spot for many American families — will be sold in Canada, but not the US. In related news, Scout Motors, the new Volkswagen Group startup that originally planned to bring a rugged battery-powered pickup truck and SUV built in America to Americans, is now adjusting its production plans to prioritize a plug-in hybrid powertrains.

Kia To America: No EV5 For You!

Recently, we reported that Kia has decided not to bring its EV4 sedan — a car that is a contender for Car Of The Year honors in Europe — to America, largely because of new tariffs on cars manufactured in South Korea imposed by the current US administration. A spokesperson for the company told the press last month, “As market conditions for EVs have changed, the release of the upcoming EV4 electric sedan will be delayed until further notice.”

In a recent press release, Kia announced pricing and the “start of online reservations for the highly anticipated Kia EV5, giving Canadians their first opportunity to order the new all-electric SUV. Exclusive to Canada for the North American market, the EV5 enters the largest vehicle segment in Canada and is the first of three affordable EVs arriving in Canada in 2026.”

Elias El-Achhab, the chief operating officer for Kia Canada, said, “The Kia EV5 is available in nine different trims, providing Canadians with plenty of options that meet a variety of preferences. Competing in the largest SUV segment in Canada as a dedicated EV, the EV5 truly is the revolution of the family SUV perfect for empowering modern families with all the technology and convenience they require.”

According to Electrive, the EV5 will start at CAD$50,662 (US$36,700) for the Light with a single motor driving the front wheels and a 60 kWh battery pack. The top of the line all-wheel drive GT-Line Limited with an 81 kWh battery will list for CAD 62,162 (US$43,600) Do you know anyone in the US who might want a fully optioned AWD midsize SUV for $43,600? Yeah, we bet you do! The car will also come standard with the NACS charging port. Here is a link to the Kia configurator for Canada for those who want to know more about prices.

Production of the Canadian-market EV5 will take place at Kia Autoland Gwangju in South Korea and begin with Wind FWD and GT-Line Limited AWD trims. The entry level Light FWD model will become available in Canada in late 2026. Kia expects to publish official range estimates early next year. The company says the EV5 will be the first of three affordable models it will introduce in Canada in the next year.

Canada has also suggested it may end the current 100% tariff on Chinese-made cars soon and replace it with something similar to the tariff structure used by the EU. Between Kia and China, Canada may soon be a Mecca for compelling electric cars that Americans are prohibited from owning, thanks to MAGA.

Scout Motors To Build Mostly Plug-in Vehicles

Bloomberg reports that Scout Motors now says most of its vehicles — which were supposed to herald a transition by Volkswagen Group to battery-electric vehicles for US customers — will be mostly plug-in hybrid vehicles. The company says nearly 80% of its pre-orders are for the PHEV version of the cars.

“The market clearly has spoken, without a doubt, and they like the EREV technology full stop,” Scott Keogh, Scout’s chief executive officer, said in an interview, noting that the hybrid can travel 500 miles on a combination of electricity and a tank of gas. “This is EV without the drama.”

Specs regarding battery and engine size as well as range have not been made official as of yet, although there are hints the battery-only Scouts will have an EPA range of 350 miles while the PHEV is said to be capable of traveling 600 miles without stopping — which is a beautiful thing if your bladder has similar endurance.

Volkswagen Group acquired Scout Motors when it purchased Navistar in 2021. Navistar was the successor to International Harvester, which debuted the Scout brand in 1960. Scouts were tough, rugged vehicles that aspired to capture some of the allure of the original Jeeps. In 1966, Ford introduced its Bronco, another “drive it through the mud, then hose it out” off-roader in the days when drivers still had to get out and manually engage the front hubs.

Decades later, Ford reintroduced the Bronco in updated form and it has been a sales success. Volkswagen saw what Ford did and thought it could get a piece of the action by creating new Scout products. Like Rivian, the Scout line-up included both a pickup truck and an SUV. Volkswagen thinks Scout may be the way for it to expand its market share in the US, where its current models account for about 5% of sales.

Scott Keogh, who used to be the head of Volkswagen of America, is undaunted by the shift in political winds in the US. He said the company will not reduce the current suggested starting price for Scout vehicles to make up for the repeal of the federal EV tax credit. “I will not take $7,500 off the price of the car,” Keogh said. “And frankly, I don’t think we need to.”

Scout has received more than 130,000 non-binding reservations over the past year. Of those, about three-quarters have been for the SUV, while just one quarter have been for the pickup truck. In fact, with sales of electric pickup trucks mostly disappointing and other US manufacturers such as Ford, GM, and Stellantis scaling back or canceling their plans to bring battery-powered pickups to market, Keogh says he is not ruling out doing the same. “Certainly, that’s something we could look at, but we’re not making that decision now.”

He pointed out that the Scout vehicles will compete in market segments that account for about 40% of profits in US new vehicle sales. “[Volkswagen Group] can plant a brand right in the heart of the US profit pool,” Keogh said. “Regardless of party, I think Americans do want things made in America. These segments are strongly dominated by a ‘Buy American’ mentality.”

Audi Production Is A Possibility

There is a possibility that the new $2 billion assembly plant in South Carolina could also build one or more Audi models alongside the Scout vehicles. Audi’s CEO said recently the brand is considering an SUV tailored to American tastes based in part on the platform being created for Scout.

That would make Audi more competitive, since locally produced  vehicles would avoid some of the tariffs cars imported from Germany have to pay. “We are capable of making products for other brands, so the platform is capable and the factory is capable,” Keogh said. “But I have actually nothing to confirm on Audi. Audi can give you that answer.”

A cynical person might suggest this whole Scout adventure might collapse in on itself much as Tesla’s Cybertruck business did, in which case that spiffy new factory in South Carolina just might become a manufacturing hub for Audi. And if that happens, maybe Porsche might want to get in on the fun, since US sales account for a large portion of its business and they have dropped dramatically because of the tariff wars initiated by the current administration. Fortunately, there are no such cynical people here at CleanTechnica global headquarters.