It’s Official! Volkswagen Confirms Scout Magna-Steyr Collaboration
Volkswagen’s plans for the Scout brand have undergone significant changes since its announcement in May of 2022. The German automaker initially stated that the Scouts would originate from the United States for American enthusiasts. However, recent reports indicate that V.W. is discussing managing the brand’s comeback with Magna International. The latest news reveals that Magna-Steyr, Magna’s Austrian outpost, has agreed to a deal worth 450 million euros to develop a battery-electric pickup and SUV due to release in 2026. However, this development has raised questions about whether Volkswagen will still manufacture the Scout in the United States.
Even though Magna is involved in its development, Volkswagen will remain responsible for manufacturing the Scout brand. Initially, Magna was supposed to handle the assembly in the U.S., but that deal fell through. As a result, V.W. will build the Scout and establish a new production facility in Columbia, South Carolina. The state has offered a significant incentive package worth $1.3 billion, which includes a provision that compels the automaker to repay $790 million if it fails to meet specific job and investment commitments. V.W.’s new facility in Blythewood, SC, is expected to play a crucial role in V.W.’s plans to manufacture the Scout brand for American customers.
Magna is a Canadian company with extensive experience producing ICE (internal combustion engine) and electric-powered trucks. Magna has erected the ICE-powered Mercedes G-Class and is responsible for creating the battery-powered Mercedes EQG. Additionally, Magna has assembled the electric Jaguar I-Pace and developed the FM29 platform, which inspired the Fisker Ocean. Moreover, Magna has already signed a contract to engineer and build the battery-electric version of the Ineos Grenadier.
Automakers often divide development and production responsibilities, and Magna is well-seasoned in producing successful vehicles. For instance, Magna collaborated with Ineos Automotive to create the Grenadier pickup, which Ineos manufactures at its Hambach factory in France. Magna also assisted in developing the Audi TT, which Audi produced in Hungary and other locations.
As one of the Scout models is a pickup, it would be wise for Volkswagen to steer clear of America’s 25% Chicken Tax on imported pickups and cargo vans by manufacturing the automobile in the United States. The new plant in South Carolina may also cater to other V.W. Group brands, such as Audi, which could use the facility to create an electric Range Rover or Mercedes-Benz G-Class rival on the new electric platform intended for the Scout.
Volkswagen’s sister company, Audi, will serve as the technology provider for the Scout division, and as a result, the two brands will continue to collaborate closely.
Based on the latest available information, the Scout brand is still planning to launch its SUV priced at $40,000 first, followed by a pickup truck that is said to be about the same size as the Ford F-150. Scout released a teaser image late last year (2022), initially brightened to reveal more information about the upcoming vehicles. However, since the appointment of Chris Benjamin as Head of Design in May 2023, the brand’s plans may have changed. With 25 years of experience in the auto industry, including six years at Fiat Chrysler/Stellantis overseeing interior design for Chrysler, Dodge, Jeep, and Ram, Benjamin’s expertise is likely to ensure that the Scout brand prioritizes both form and function in its upcoming vehicles.
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Photo Source/Copyright: Scout Facebook