In May 2022, Volkswagen Group made headlines with the announcement of plans to resurrect the Scout brand, setting a course to introduce an all-electric pickup truck and SUV by 2026. The momentum continued in July with the appointment of Scott Keogh as CEO, and November witnessed the launch of a new website. The stakes were raised in March 2023 when Volkswagen unveiled intentions to construct a state-of-the-art $2 billion assembly plant in Blythewood, South Carolina, dedicated to producing the two Scout models. Chris Benjamin joined the team as Head of Design in May 2023, further solidifying the brand’s commitment to its ambitious electric vehicle venture.
However, the latest report indicates a strategic shift in Volkswagen’s approach. It appears that the German automaker has opted to outsource the development of the electric SUV and pickup truck, with Magna Steyr securing the monumental €450 million contract (approximately $492.7 million at current exchange rates). This move is regarded as one of the most significant development contracts ever undertaken by Magna Steyr, headquartered in Graz, Austria.
Magna Steyr, known for its extensive manufacturing portfolio, including the iconic Mercedes G-Class assembled since the late 1970s, has become a pivotal partner for various automotive giants. The company celebrated a noteworthy achievement earlier this year when it rolled out its 500,000th vehicle. Boasting a robust track record, Magna Steyr has built 31 different models, totaling over four million cars. Notable collaborations include the Toyota Supra/BMW Z4, Jaguar’s E-Pace and I-Pace, and the new Fisker Ocean model.
Sources from the Austrian press reveal that Magna Steyr is already immersed in the development process for Scout Motors, mobilizing engineers in Graz and the United States. While a spokesperson for Magna refrained from commenting on the report published on November 23, the collaboration aligns with earlier speculations about Volkswagen exploring outsourcing possibilities. It appears that while Volkswagen retains control over the assembly process, Magna Steyr will play a pivotal role in the developmental phase.
The timeline for the production of the two electric models remains on track, with commencement scheduled for late 2026 and an annual capacity exceeding 200,000 units. The expansive 1,100-acre factory, situated within a larger 1,600-acre site, is anticipated to generate over 4,000 permanent jobs. Emphasizing a dedicated EV platform, Scout Motors aims to deliver vehicles with “reliable capability and off-road prowess,” as outlined in a previous statement by the company.
