Scout Motors, the off-road brand owned by Volkswagen Group, announced on Friday that it will invest $2 billion to construct a manufacturing facility for trucks and SUVs in Columbia, South Carolina. This move is in line with VW’s plan to reintroduce the Scout brand in the United States, offering new electric pickup and SUV models.
The investment is expected to create over 4,000 permanent jobs, with the facility having the capacity to produce more than 200,000 Scout vehicles annually. Groundbreaking is scheduled for mid-2023, and production is projected to begin by the end of 2026. At present, Scout is an independent U.S. company under the ownership of Volkswagen Group, which is evaluating the potential for outside investment.
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“We’re reimagining Scout’s original ingenuity and electrifying its future,” said Scout Chief Executive Scott Keogh.
The decision to build the manufacturing plant comes as Volkswagen Group shifts its focus away from cars in the United States, adding more electric models to its portfolio. Currently, SUVs account for about 80% of the group’s VW and Audi brands’ sales in the United States. It is worth noting that VW last sold a pickup in the country 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 Chevrolet Suburban.
However, Harvester ceased production of the Scout and Travelall in 1980 following the oil price shocks of the mid-1970s during a restructuring process.
See also: Volkswagen is bringing back iconic Scout as electric SUV model
Nevertheless, the Scout “look” lives on in vehicles such as Ford’s current Bronco and electric vehicle startup Rivian’s R1 pickup and SUV line.
In late 2021, Volkswagen disclosed that it was considering using the Scout name, which was acquired by the automaker’s Traton SE business when it acquired U.S. truck maker Navistar in 2020.
The investment is the latest major auto announcement for South Carolina, which is home to BMW’s U.S. operations and its largest plant by volume. The state also has over 500 automotive-related companies and 75,000 automotive industry employees.
See also: New teaser images show Volkswagen’s Scout new electric off-roader
In October, BMW announced it would invest $1.7 billion to manufacture electric vehicles in South Carolina. The German automaker also made a new $1 billion investment in its Spartanburg plant to prepare for EV production and is spending $700 million on a new high-voltage battery assembly facility in nearby Woodruff, South Carolina.
