In May, the Volkswagen Group decided to revive a traditional brand in America. Under the name “Scout”, the Wolfsburg-based company wants to launch a fully electric pick-up and an SUV on the US market from 2026, with the hope of helping the weakening market share in the country. Talks are now underway at high pressure about the constellation in which the new vehicles can be produced locally – alone or with partners.
As the “Automobilwoche” reports, VW is considering, among other things, the contract manufacturer Foxconn for a cooperation. According to the report, negotiations are ongoing with the Taiwanese group, which has become known as a manufacturer of Apple devices and recently made headlines because of mass protests against harsh corona restrictions at its plant in Zhengzhou, China. However, the talks are at an early stage, so it is unclear whether the cooperation will come about. From Wolfsburg it was only said on Tuesday that they were “very satisfied with the progress that the scout team is making and with the enthusiasm that it is already triggering among current fans and future customers”. VW does not comment on speculation about possible partnerships.
In the USA, the Wolfsburg-based company mainly manufactures in Chattanooga, where VW has had its own plant since 2011. A separate factory is now planned for the new Scout brand, the location of which has not yet been determined. The group does not rule out running the production itself, as in Chattanooga, but is also examining cooperation with contract manufacturers such as Foxconn for cost reasons. Magna Steyr from Austria is apparently also being discussed as a possible partner.
A cooperation with VW is interesting for the Chinese because they are planning to enter the automotive industry in addition to the electronics industry. According to the report, they acquired an old General Motors factory in the US state of Ohio a year and a half ago in order to build electric vehicles there. In turn, Wolfsburg could save costs if they outsource the production of Scout to an external partner. In addition, this would make it even easier to communicate the profile as an independent brand independent of the VW Group, according to the VW strategists. You want to get off the defensive in the USA and have announced the goal of more than doubling your market share from 4 to 10 percent, also in order to become less dependent on markets like China.
Scout goes back to a model from the former US manufacturer International Harvester, which VW took over in 2021. It enjoys cult status in the country and has many fans, a popularity that the Wolfsburg-based company want to build on with the new edition. The first step was the establishment of a company for design, development and production in this year. Prototypes are to be shown in 2023. Scott Keogh, former regional head of VW in North America, has taken over the management of the new company.
