Volkswagen May Build Scout EV On Its Own At New US Factory

While VW talked of leaning on a company like Foxconn or Magna to produce the Scout EV brand, it may be changing course.

2026 Scout EV teaser

Steven Loveday

By: Steven Loveday

Feb 24, 2023 at 12:45pm ET

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If you've been following news about the potential for Volkswagen to bring a Scout EV to market in the future, you're probably aware that the global automaker aimed to contract a company like Foxconn or Magna to handle the production of the upcoming electric-only off-road-ready brand. However, now reports are surfacing that VW may go at it alone with a new US factory.

EVs are clearly catching on across the globe, and there's been a notable spike in EV adoption in the States of late. This may help convince global automakers to move more EV manufacturing to our shores. Not to mention the fact that the newly revamped US federal EV tax credit will provide a much greater benefit to domestically produced electric cars with batteries and materials that are locally sourced.

Volkswagen officially owns all rights to the Scout brand. The global powerhouse automaker has already made it clear it hopes to revive the brand as an EV-only division that's specifically geared to the US market.

With that said, according to Automotive News Europe, sources at Volkswagen Group reportedly shared with Automobilwoche that the automotive group is going to build its own factory in the US for the upcoming Scout EV brand, which is planned for production in 2026. The sources at the automotive manufacturer reportedly said:

"The decision to build the plant ourselves has been taken."

Volkswagen Group's Scout EV brand aims to introduce an electric pickup truck and an off-road SUV as its initial offerings. Such vehicles will compete with the likes of the Rivian R1T and R1S, along with various electric pickup trucks from automakers including Ford, General Motors, and Stellantis.

The Tesla Cybertruck is also supposed to join the club later this year, with large-scale production beginning in 2024, though it has been delayed many times, and details are scarce.

More About Volkswagen Group's Upcoming Scout EV Brand:

Volkswagen Group Names North America Boss As CEO Of Scout EV Brand

Volkswagen’s Scout Motors Teases 2026 Electric SUV

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The report goes on to share that Audi, another brand that lives under the Volkswagen Group umbrella, is also considering a US factory. The German luxury automaker hopes to take advantage of various EV incentives that are part of the Biden Administration's Inflation Reduction Act.

Automobilwoche reported that Audi has confirmed the potential for such plans, which were first shared in comments to the media by Audi CEO Markus Duesmann.

Source: Automotive News Europe

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