Scout Motors, a subsidiary of Volkswagen Group, recently announced its plans to establish a $2 billion factory in Blythewood, South Carolina. The company is expected to start production of electric SUVs and pickup trucks in 2026, and it selected the Blythewood site after considering 74 locations across the South, Midwest, and Western regions of the United States.
In order to secure Scout Motors as a new business in the state, South Carolina Governor Henry McMaster signed a generous $1.3 billion incentive package into law on March 20th. The package includes a $400 million grant for Scout Motors, $650 million for infrastructure development including a new interchange and railway bridge, and $16 million to acquire property for a rail mainline connection. Additionally, the package includes a $200 million loan for soil stabilization that will be repaid with 5% interest.
See also: Volkswagen’s Scout Brand to Build Own Factory for Electric SUVs and Pickup Trucks in the US
According to Scout Motors CEO Scott Keogh, the decision to select the Blythewood site was based on three key factors. “I think the first thing, obviously, is the infrastructure. You need the infrastructure behind it, the logistics, you need rail, you need water, you need energy. And so that whole package was ready to go, which was exciting,” said Keogh. “I think the most important thing, and the second thing, of course, is the talent. You need a workforce thatâs motivated, you need a workforce of course that has the education levels and everything thatâs needed to succeed. And then the third thing, which was probably one of the biggest ones as well is the state was absolutely ready.”
This investment in South Carolina is expected to have a significant impact on the state’s economy, creating thousands of new jobs and boosting local businesses. It also reflects a growing trend towards electric vehicle production in the United States, as automakers increasingly recognize the potential of this emerging market.
See also: Volkswagen is bringing back iconic Scout as electric SUV model
As we move towards a more sustainable future, it is encouraging to see companies like Scout Motors taking bold steps to invest in electric vehicle production. By working together with state and local governments to build the necessary infrastructure, and by investing in a skilled workforce, these companies can play a key role in shaping a greener, more prosperous future for us all.
