When Volkswagen CEO Oliver Blume took the helm in September 2022, he announced that the German carmaker will aggressively pursue EV plans. As discerning consumers become more aware of the harm caused by fossil fuel-based vehicles, they are turning to electric and hybrid models to get them to where they want. And Volkswagen wants to be at the start of their journey.
The Volkswagen EV has been leading the way in the European market and hopes to catch up to Tesla in the US market. As the future is EV, Scout is expected to bring a more rugged look into the business.
The $2 billion factory in South Carolina will be its first production facility in the US and the start of a new journey.
Volkswagen’s Scout Motors Powers EV Dreams in the US
Scout Motors, Volkswagen’s off-road brand, announced on March 3 that it will build a $2 billion manufacturing facility in South Carolina for trucks and SUVs.
The company will construct its plant at the Blythewood Industrial Park and end up creating thousands of jobs for locals.
“The Scout Motors Vehicle Corporation, subsidiary of Volkswagen, has chosen to bring a plant into Blythewood, our industrial park about 1350 acres,” announced the mayor of Blythewood, Bryan Franklin.
It is estimated that the manufacturing facility will create around 4,000 jobs and give a boost to the local economy. The plant will also be capable of producing over 200,000 Scout vehicles annually. Last year in May, Volkswagen had revealed that it will bring its Scout brand to the US.
While ground-breaking will be done by mid-2023, production will not start until late 2026. As both SUV and trucks will be part of the new Scout line-up, it will give its EV rivals a run for their money.
South Carolina is a popular destination for the auto industry, and already houses over 500 auto-related facilities. Scout’s new site is spread out over 1,600 acres and is close to major highways and ports making transportation easier.
“We’re honored to partner with South Carolina to usher in this new era for Scout,” said Scott Keogh, President and CEO of Scout Motors. “Scout has been an American icon since introducing an SUV in 1960. It’s the vehicle that took your family on a camping trip, that gave access to the great outdoors, and that showed up on the job site every morning. Today, we’re reimagining Scout’s original ingenuity and electrifying its future. We’re bringing the Scout spirit to South Carolina and it’s going to be a hell of a ride.”
The Environmental Commitment
Volkswagen has been committed towards net-zero goals although its image was once tainted by the emissions scandal.
In 2021, the company announced its decision to work on decarbonizing its plants and products. The German carmaker will invest approximately 14 billion euros in decarbonization by 2025.
Recognizing that the future of Volkswagen EVs, the company has plans to launch a total of around 70 new electric models by 2028. It is also targeting carbon neutrality by 2050.
The automaker believes that expanding e-mobility is key to making lasting changes that will help it achieve a fully CO2-neutral balance.
According to the company website, the group is focused on bringing down carbon emissions by focusing on three principles: “first, effective and sustainable CO2 reduction. Second, switch to renewable energy sources for power supply. Third, compensate for remaining emissions that cannot be avoided.” The brand wants to go fully electric by 2035 in Europe. It will then set its sights on the US, followed by the rest of the world.
The company made its pledge as far back as 2019, with then CEO Dr Herbert Diess, CEO of Volkswagen AG, declaring, “Volkswagen is taking on responsibility with regard to the key trends of the future – particularly in connection with climate protection. The targets of the Paris Agreement are our yardstick.”
For now, the brand appears to be on track towards fulfilling its commitments towards environmental responsibility and providing people with safe, e-mobility options.
