Volkswagen’s Scout unit wins $1.3 billion in incentives for South Carolina factory

Volkswagen’s off-road brand, Scout Motors, has been given the go-ahead to build a $2 billion manufacturing plant for trucks and SUVs, in South Carolina. The state’s Governor, Henry McMaster, recently approved $1.29 billion in incentives to support the plant’s development. The government has also offered an additional $180 million in job development tax credits based on hiring. Scout is hoping to create around 4,000 jobs and construct 200,000 vehicles annually. Breaking ground for the new plant is planned for mid-2023, with production set to begin towards the end of 2026.

Scout CEO Scott Keogh said that the state’s “site was ready” and that the Governor, wishing to ensure the state was ready for the EV revolution, had created an “EV council”.

In May, VW announced it would be launching the Scout off-road brand in the US, offering new electric-powered pickup and sport-utility vehicles, as it moves away from cars, with SUVs currently representing around 80% of US sales for the group’s VW and Audi brands. The last time VW sold a pickup truck in the US was in the early 1980s.

VW’s Traton business acquired US truck maker Navistar in 2020, and with it the rights to the Scout name, which it has now chosen to use for its off-road brand in the US market. Scout and Travelall vehicles, made by International Harvester, were SUV precursors to the likes of the Ford Bronco and General Motors Co’s Chevrolet Suburban.

South Carolina is a leading state for the automotive sector, and the home of BMW’s largest US plant. Over 500 automotive-related companies are based there, employing around 75,000 workers.

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