Volkswagen's Scout to build $2 billion plant in South Carolina

Reuters

Published Mar 03, 2023 12:36PM ET

Updated Mar 03, 2023 01:36PM ET

By David Shepardson and Ludwig Burger

WASHINGTON/FRANKFURT (Reuters) - Volkswagen (ETR:VOWG_p)'s off-road brand Scout Motors said on Friday it would build a $2 billion manufacturing plant near Columbia, South Carolina, for trucks and SUVs.

The investment could potentially create 4,000 or more permanent jobs and more than 200,000 Scout vehicles could be produced annually at the facility.

In May, VW said it would reintroduce the Scout off-road brand in the United States, offering new electric pickup and sport-utility vehicles (SUVs).

Groundbreaking is planned for mid-2023 and production is projected to begin by the end of 2026. Scout, an independent U.S. company owned by Volkswagen Group, is currently evaluating the potential for outside investment.

"We’re reimagining Scout’s original ingenuity and electrifying its future," said Scout Chief Executive Scott Keogh.

Volkswagen has moved away from cars in the United States as it adds more electric models. SUVs now account for about 80% of the U.S. sales of the group’s VW and Audi brands. VW last sold a pickup in the United States in the early 1980s.

Scout and Travelall vehicles made by International Harvester were forerunners in both function and style of the popular SUVs from Detroit's Big Three automakers such as the Ford Bronco and General Motors (NYSE:GM) Chevrolet Suburban.

Harvester stopped building the Scout and Travelall in 1980 after the oil price shocks of the mid-1970s as it went through a restructuring.

But the Scout "look" lives on in vehicles such as Ford’s current Bronco and electric vehicle startup Rivian‘s R1 pickup and SUV line.

Volkswagen first disclosed it was considering using the Scout name late in 2021. The automaker’s Traton SE business acquired U.S. truck maker Navistar (NYSE:NAV) in 2020, which owns the name.