Volkswagen Is Outsourcing Development of The Scout Electric SUV

Volkswagen Group has reportedly decided to externalise the development of its upcoming Scout electric SUV and truck, opting for Magna Steyr to engineer the two models in exchange for €450 million (approximately RM2,307,300,007). This significant development contract marks a notable collaboration between the German automotive giant and Magna Steyr, a renowned contract manufacturer based in Graz, Austria.

The revival of the Scout brand by Volkswagen was announced in May 2022, with plans to introduce an electric pickup truck and SUV in 2026. Subsequent developments included the appointment of CEO Scott Keogh in July, the announcement of a new assembly plant in Blythewood, South Carolina, and the appointment of Chris Benjamin as Chief of Design in May 2023. The project has now taken a new turn with the decision to externalise the development process.

Magna Steyr, known for its extensive experience in contract manufacturing, is tasked with engineering the electric SUV and truck for Scout Motors. The €450 million agreement positions Magna Steyr as a key player in the development of these EVs. The company, which has been assembling vehicles since the late 1970s, has built various models, including the iconic Mercedes-Benz G-Class, and is currently involved in the production of models like the Toyota Supra/BMW Z4, Jaguar’s E-Pace and I-Pace, and the Fisker Ocean.

Production of the Scout electric SUV and truck is scheduled to begin by late 2026 at the newly announced assembly plant in South Carolina. The facility, with an annual capacity exceeding 200,000 units, is part of a larger site covering approximately 1,600 acres, creating over 4,000 permanent jobs. The vehicles will ride on a dedicated EV platform, promising “credible capability and off-road prowess,” according to a previous statement by Scout Motors.

The “Scout” name was acquired by the Volkswagen Group through its purchase of US commercial vehicle manufacturer Navistar in late 2020. Navistar, founded in 1986, succeeded the International Harvester company, which held the rights to the “Scout” moniker.

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