Volkswagen’s electric subsidiary, Scout Motors, has announced its plan to expand its footprint in the U.S. by building a new $11 million product design and engineering facility in Novi, Michigan. The new “Innovation Center” will become home to the production of its electric truck, while creating several new jobs in the area.
On Dec. 12, the Michigan Strategic Fund awarded Scout Motors a $10 million grant to entice the automaker to build on Michigan soil. Additionally, the Virginia-based manufacturer expects to create 200 jobs with its new facility.
The iconic nameplate Scout was first used on the International Harvester Scout, an off-road vehicle manufactured in the 1960s and 1970s. Volkswagen Group announced in 2022 that it would bring the brand back as an all-electric vehicle aimed at a market similar to that of the Rivian R1 EVs.
Intending to produce 200,000 EVs a year, the automaker is currently constructing a factory in South Carolina. However, the automaker says its upcoming trucks and SUVs will be constructed on an all-electric platform focusing on off-road capabilities. The vehicles will offer improved ground clearance, approach angles, payload capacity, and range while featuring new digital features. Production is expected to begin in late 2026.
Most of the engineering workforce will be based at the 80,000-square-foot Scout Innovation Center. To ensure top talent, the automaker intends to recruit engineers from the Detroit metropolitan region and beyond, including other parts of the nation.
Scout CFO Chris Condon said, “We were founded in 2022, and our mission is clear: to craft all-electric trucks and rugged SUVs and ensure they’re rooted in the same tradition that made the original Scout an American icon.”
