by Michael Gauthier
- Costs for Scout’s new U.S. plant have ballooned to $3 billion.
- The company originally expected to spend around $2 billion.
- Production of the Terra and Traveler is set to begin in 2027.
Volkswagen brought the Scout brand back from the dead, but doing so has become significantly more expensive than expected. In particular, the cost of their new plant in Blythewood, South Carolina has reportedly soared to $3 billion.
According to Handelsblatt, the company originally expected to spend $2 billion on the facility. However, a Scout spokesperson confirmed the new figure and described the previous number as a “guaranteed minimum investment.” They added “our investments have grown as we have realized this vision” of creating a “world-class production facility.”
New $300 Million Supplier Park
It’s unclear why costs have soared so much, but the company recently announced plans to invest an additional $300 million to build a Supplier Park on the production site.
This is being done without new government incentives and is expected to generate approximately 1,000 jobs. The Supplier Park will span nearly 200 acres and include a battery assembly building as well as an accessories building, which will be dedicated to customizing vehicles.
More: Scout Finalizes SUV And Pickup Design With Only A Few Subtle Changes
At the time, Scout Motors CEO Scott Keogh said “This expansion reinforces our long-term commitment to American manufacturing and reflects our continued belief in South Carolina as a hub for automotive innovation and economic growth.” He added, “Our on-site Supplier Park will strengthen our production capabilities and help establish a vibrant, resilient supply chain ecosystem that will benefit the region for decades to come.”
While it remains unclear where the remaining $700 million is going, Scout isn’t getting any new incentives from the state. That being said, the South Carolina Department of Commerce told the publication, “The combination of unexpected permitting and remedial measures, as well as excessive rainfall, led to delays in the schedule and additional costs of $150 million.”
Having Second Thoughts?
The soaring costs will likely add pressure to Scout’s reboot. This comes at a bad time as the publication reports “doubts about the project’s success had grown within the company.”
While some of this was due to trade tensions between Europe and the United States, Volkswagen also has a partnership with Rivian. They make the R1T and R1S, which aren’t that far removed from the Terra and Traveler as they’re both off-road focused trucks and SUVs.
That being said, the Scout models are slated to start under $60,000. Besides being cheaper than the aforementioned Rivians, Scout will offer both electric and range-extended powertrains. The latter is a huge differentiator and is expected to give the models an overall range in excess of 500 miles (805 km).