Volkswagen is considering a new family of body-on-frame vehicles for North America, potentially giving the automaker rivals for the Toyota Tacoma and 4Runner. The idea comes as Volkswagen faces major challenges but looks to establish a dedicated strategy for the U.S. market.

Volkswagen Sets Its Sights on North America

Volkswagen’s new American boss, Marco Schubert, replaces Kjell Grunner after just two years and takes over at a difficult time for the company. Automakers cannot rely on consistent government guidance, while the market has moved away from the electric-car revolution that Volkswagen and many other automakers had invested heavily in.

Among Volkswagen Group’s announcements last week was a plan to pursue North American opportunities through a dedicated regional strategy.

The company stated, “In line with its ‘In China, for China’ and ‘In Europe, for Europe’ strategies, Volkswagen will also pursue a dedicated North America strategy.”

As part of that approach, Volkswagen said it will explore opportunities in the highly popular body-on-frame B-segment, including robust SUVs and pickup trucks, as a potential part of its future product portfolio.

Body-on-Frame SUVs and Pickups Under Consideration

Volkswagen’s statement is not a guarantee that new off-road models will reach the market. However, the company is looking at a segment that has seen the revival of the Land Cruiser, the Ford Bronco beating the Wrangler in sales, and Nissan confirming a new Xterra.

That activity has created an opportunity for Volkswagen to consider entering the segment while demand remains strong.

Volkswagen Has Previous Pickup Experience

Volkswagen has more experience with pickup trucks than many Americans may realize. In addition to the older Type 1 and Type 2 trucks, the automaker has produced the midsize Amarok.

The first-generation Amarok was built in-house by Volkswagen and was described as an over-engineered truck that was capable and considerably more luxurious than rivals in the global market.

The second generation followed a different strategy. Volkswagen partnered with Ford and shared the Ranger’s underlying architecture and engines. Despite that connection, the Amarok never reached the U.S. market because of the Chicken Tax.

Volkswagen has officially teased a third-generation Amarok that is believed to no longer share underpinnings with Ford. Reports, however, claim that this will not be the truck coming to North America.

Scout Could Help Volkswagen Build a U.S. Truck

If Volkswagen decides to pursue a body-on-frame vehicle for North America, the company would need to invest in local American manufacturing. The Chicken Tax makes importing pickup trucks subject to tariffs large enough to make them unviable for the local market.

Volkswagen could have an advantage over rivals entering the segment because of its revived Scout brand and significant investment in Rivian.

Rivian’s role is primarily focused on leveraging software, but the company has also established itself in the American off-roading scene and could provide Volkswagen with insights as it considers how to compete in the segment.

Scout is particularly relevant because its Terra pickup and Traveler SUV use a rugged body-on-frame architecture.

Scout Platform Could Support Volkswagen Group Models

The Scout vehicles are EVs first and foremost, but various patent filings indicate that the platform is highly versatile. One of those filings reveals the placement of the range-extender engine.

It has also been reported that Audi will borrow the platform for its own rugged rival to the Mercedes G-Class.

For Volkswagen Group, using a common architecture across Volkswagen, Audi, Scout and potentially other brands could create economies of scale and make it significantly easier to bring a vehicle to market in a shorter period.

More Automakers Are Entering the Rugged Vehicle Market

The automotive market is oversaturated, leading automakers to consolidate their lineups and remove models that do not pay their way. But when a new segment develops strong demand, entering early can provide an opportunity before the trend fades.

The rugged body-on-frame segment has grown significantly, with the Bronco and Land Cruiser demonstrating that there is room for additional models.

Nissan is developing a new Xterra, while Mitsubishi’s new Pajero is likely to spawn an American cousin reviving the Montero nameplate. Hyundai is also reportedly joining the segment, with the Boulder Concept previewing a pickup truck for America that is believed to receive an SUV version as well.

Kia could then leverage that vehicle for its own rugged models. Further upmarket, Audi and Genesis are attempting to rival the G-Class, while BMW might also enter the segment.

Volkswagen Weighs a New North American Opportunity

Volkswagen’s potential body-on-frame program remains under investigation and has not been confirmed. Still, the company’s dedicated North American strategy, combined with the Scout platform and its investment in Rivian, could give Volkswagen resources for entering the market.

With several automakers moving into rugged SUVs and pickups, Volkswagen is now considering whether this growing segment should become part of its future North American product portfolio.