Volkswagen’s Scout to construct $2 bln plant in South Carolina

WASHINGTON/FRANKFURT, March 3 (Reuters) – Volkswagen’s (VOWG_p.DE) off-highway model Scout Motors mentioned on Friday it would make a $2 billion producing plant in the vicinity of Columbia, South Carolina, for vans and SUVs.

The expenditure could probably build 4,000 or more lasting work and far more than 200,000 Scout cars could be manufactured every year at the facility.

In May, VW explained it would reintroduce the Scout off-street brand in the United States, presenting new electric powered pickup and activity-utility motor vehicles (SUVs).

Groundbreaking is prepared for mid-2023 and output is projected to start off by the end of 2026. Scout, an unbiased U.S. organization owned by Volkswagen Group, is at this time evaluating the probable for outside the house financial investment.

“We’re reimagining Scout’s authentic ingenuity and electrifying its long run,” stated Scout Chief Govt Scott Keogh.

Volkswagen has moved away from cars and trucks in the United States as it adds much more electrical products. SUVs now account for about 80% of the U.S. income of the group’s VW and Audi brand names. VW very last sold a pickup in the United States in the early 1980s.

Scout and Travelall automobiles created by International Harvester ended up forerunners in both purpose and design of the popular SUVs from Detroit’s Large A few automakers this sort of as the Ford (F.N) Bronco and Standard Motors (GM.N) Chevrolet Suburban.

Harvester stopped creating the Scout and Travelall in 1980 following the oil cost shocks of the mid-1970s as it went through a restructuring.

But the Scout “look” life on in autos this kind of as Ford’s recent Bronco and electrical car or truck startup Rivian‘s (RIVN.O) R1 pickup and SUV line.

Volkswagen to start with disclosed it was looking at using the Scout identify late in 2021. The automaker’s Traton SE (8TRA.DE) company acquired U.S. truck maker Navistar in 2020, which owns the title.

The information is the most recent main automobile announcement for South Carolina, which is household to BMW’s (BMWG.DE) U.S. functions and its major plant by quantity. The state also has in excess of 500 automotive-related corporations and 75,000 automotive sector employees.

BMW stated in October it would commit $1.7 billion to establish electric powered vehicles in South Carolina. The German automaker made a new $1 billion investment decision in its Spartanburg plant to put together for EV manufacturing and is investing $700 million on a new superior-voltage battery assembly facility in nearby Woodruff, South Carolina.

Reporting by David Shepardson and Ludwig Burger, Enhancing by Louise Heavens and Invoice Berkrot

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