Volkswagen’s Scout Brand Secures $1.3 Billion Incentive for $2 Billion South Carolina Factory

Volkswagen’s Scout brand has received a substantial incentive of nearly $1.3 billion for its upcoming $2 billion manufacturing facility in South Carolina. State Governor Henry McMaster signed the legislation approving the incentive package.

In addition to the direct incentive, Scout will benefit from up to $180 million in tax credits for job development, contingent on its hiring plans, according to South Carolina’s Commerce Secretary Harry Lightsey. Volkswagen anticipates that the Scout plant will generate approximately 4,000 jobs, with positions in the body shop, paint shop, and final assembly buildings.

See also: Scout Motors Set to Revive Iconic American Truck Brand with Electric SUVs and Pickup Trucks

🚙 Our colleagues from #ScoutMotors are pushing to craft #electric trucks & rugged SUVs in South Carolina, USA.

The 1.84bn-EUR factory will create over 4,000 jobs & includes
✅ body shop
✅ paint shop
✅ final assembly buildings

Start of production is targeted for late 2026. pic.twitter.com/EeZ83OyRim

— Volkswagen Group (@VWGroup) June 25, 2024

The production plant is scheduled to commence operations by late 2026. The $2 billion facility will span 1,600 acres and focus on producing electric trucks and rugged SUVs.

Earlier this year, Scout CEO Scott Keogh indicated that the company plans to unveil its first all-electric mule in the third quarter. The vehicle is expected to start at $40,000.

“The design of the product is, I would say, 85, 90, 95 percent of the way there. Proportions readily dialed in, exterior design dialed in,” Keogh stated.

See also: Volkswagen Confirms No Plans for Pickup Truck in US, Shifts Focus to Electric Off-Road Scout Brand

“What we are pushing for is what I would call a sort of large B SUV and then a full-size pickup,” Keogh added. “That’s what we’ll be bringing to the market but certainly there’s opportunities there, and when we have some to announce, we will.”

Volkswagen aims for the Scout brand to penetrate the U.S. electric pickup truck market, enhancing its market share in the competitive American automotive industry.