Development Of The Volkswagen Scout Electric SUV Is Being Outsourced

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Volkswagen Group has reportedly opted to outsource the development of its upcoming Scout electric SUV and truck, striking a deal with Magna Steyr to engineer both models for approximately €450 million (roughly RM2,307,300,007). This significant contract signifies a notable partnership between the German automotive giant and Magna Steyr, a respected contract manufacturer based in Graz, Austria.

The revival of the Scout brand by Volkswagen was announced in May 2022, outlining plans to unveil an electric pickup truck and SUV in 2026. Following this, CEO Scott Keogh was appointed in July, a new assembly plant in Blythewood, South Carolina was disclosed, and Chris Benjamin was named Chief of Design in May 2023. However, there has been a recent shift in the project with the decision to externalize the development process.

Magna Steyr, renowned for its expertise in contract manufacturing, has been entrusted with engineering the electric SUV and truck for Scout Motors. The €450 million agreement positions Magna Steyr as a pivotal contributor to the development of these electric vehicles. With a history of assembling vehicles since the late 1970s, Magna Steyr has constructed various models, including the iconic Mercedes-Benz G-Class, and is presently engaged in producing models like the Toyota Supra/BMW Z4, Jaguar’s E-Pace and I-Pace, and the Fisker Ocean.

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The production of the Scout electric SUV and truck is set to commence by late 2026 at the newly announced assembly plant in South Carolina. Spanning approximately 1,600 acres, the facility will have an annual capacity of over 200,000 units, generating more than 4,000 permanent jobs. These vehicles will be based on a dedicated EV platform, promising significant capability and off-road prowess, as per previous statements by Scout Motors.

The “Scout” name became part of the Volkswagen Group through its acquisition of US commercial vehicle manufacturer Navistar in late 2020. Navistar, established in 1986, succeeded the International Harvester company, which originally owned the rights to the “Scout” name.

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