On Monday, Volkswagen subsidiary Scout Motors received an incentive package totaling $1.3 billion from the South Carolina Department of Commerce.
The funds were awarded to the electric pickup brand to assist in the construction of a $2 billion factory in the state. According to CEO Scott Keogh, the fledgling automaker had scouted 74 locations in multiple states in a process it expected to take over a year to complete. However, the search only lasted two months, since South Carolina came prepared with an offer. “This was the best play based on the 74 sites, full stop,” Keogh explained to Automotive News, adding later that the “whole package was ready to go.”
The facility is expected to cost roughly $2 billion in total, and will launch sometime in 2026. Scout Motors will use the plant to build electric pickups and SUVs under the VW umbrella. The brand’s first model has yet to be revealed, but Keogh noted that it would take some inspiration from the classic 1980 International Scout II. While the EVs will share some components with other VW entries, Keogh promised that the vehicles will possess an original architecture and platform.
Of the $1.3 billion in funds, roughly half will be used to build necessary infrastructure for the facility, such as new roads and waste management. Scout Motors plans to put $16 million towards the construction of a railroad connection with the mainline to establish its supply chain. South Carolina also provided the automaker a $200 million loan for soil stabilization, although this will need to be paid back.