The US electric car market, although inferior to the European one, is one of the most promising in terms of growth potential and profitability, so Volkswagen is ready to pay special attention to this geographical area. Government subsidies have made it worthwhile to build a Volkswagen plant in South Carolina, and subsidiary Scout thinks there’s no better time to do so.
Image Source: Scout Motors
Scott Keogh, head of the Scout brand, under which Volkswagen will produce electric crossovers and pickups in the US, compared our time to the “gold rush” of the mid-nineteenth century, which attracted people who wanted to get rich in the US mines. The federal Inflation Reduction Act (IRA) subsidizes automakers to build electric vehicle facilities in the US, and it has forced Volkswagen to put aside any doubts about building its own plant in South Carolina. At the same time, not so long ago, the company thought about using the assembly sites of a contract manufacturer to develop the North American market, but the willingness of the authorities to subsidize the project prompted it to build its own enterprise.
A 648-hectare site in South Carolina will host a Volkswagen facility that will employ 4,000 employees and allow assembly of Scout-branded electric vehicles for the local market from 2026. “You want to arrive here early to get a better seat, and if you are late, you will miss the opportunity,” Scott Keough explained the determination of the German auto giant. In 2021, Volkswagen acquired the rights to use the Scout trademark, under which SUVs have been sold in the United States since 1960 for twenty years. After reaching its design capacity, the plant in South Carolina will be able to produce up to 200,000 vehicles per year. The company will spend at least $2 billion on the construction of the enterprise.
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