BERLIN – Volkswagen Group’s supervisory board will focus on plans to construct a brand new U.S. manufacturing unit at a gathering on Friday, two sources near the matter mentioned, with one including the board was anticipated to approve the mission.
The manufacturing unit is a brand new plant for the Scout model, in accordance with one of many sources, which Volkswagen has mentioned will likely be designed, engineered and manufactured within the U.S. with manufacturing as a result of begin in 2026.
VW declined to remark. The automaker has beforehand mentioned a choice on whether or not to construct a plant for the model had not but been made.
Scott Keogh, the previous VW Group of America CEO who final yr was tapped to guide Scout Motors, additionally declined to remark.
Final week, Automotive Information sibling publication Automobilwoche, citing firm sources, reported that VW Group determined to construct the Scout plant by itself after contemplating contract producers Foxconn and Magna.
VW is increasing its Chattanooga plant to supply the ID. Buzz — however the Scout model will construct off-road electrical pickup vehicles and SUVs that require a brand new platform. The Chattanooga plant doesn’t have sufficient area to do all of it, a supply informed Reuters final Might.
Scout and Travelall autos made by Worldwide Harvester have been forerunners in each operate and magnificence of common SUVs from the Detroit 3, such because the Ford Bronco and Chevrolet Suburban.
Harvester stopped constructing the Scout and Travelall in 1980, however Volkswagen’s Traton SE enterprise acquired U.S. truck maker Navistar in 2020, which owns the Scout title.
Volkswagen has mentioned reintroducing the model is a key a part of its technique of reaching a collective 10 p.c U.S. market share throughout all of its manufacturers.
Individually, Audi CEO Markus Duesmann final week informed Frankfurter Allgemeine Sonntagszeitung that the luxurious model is contemplating constructing a plant within the U.S. to benefit from the subsidies provided by way of the Inflation Discount Act. Nonetheless, he mentioned, a choice has not been made.
It was unclear whether or not VW Group will think about producing Scout and Audi autos from the identical U.S. plant.
In March final yr, VW Group introduced it might make investments a minimum of $7.1 billion in North America by way of 2027 to construct up its regional electrical automobile manufacturing capability — together with development of a battery plant in addition to overhauls of its meeting plant in Puebla and an engine plant in Silao, Mexico — and bolster interim inner combustion engine-powered manufacturing.
Automotive Information contributed to this report.