Big Ambitions Come With Bigger Bills
After facing lawsuits before even selling a single vehicle, Scout Motors has encountered another setback—this time involving its production plant in South Carolina. Germany’s Handelsblatt reports that the cost to complete the facility has risen by an additional $1 billion, bringing the total to $3 billion.
The full breakdown of the additional costs has not been disclosed. However, $300 million is allocated to a supplier park expected to generate around 1,000 jobs. The remaining $700 million has not been specified in detail, though the South Carolina Department of Commerce has cited roughly $150 million in added costs tied to schedule delays stemming from permitting and remedial work, as well as excessive rainfall.
Road to Revival Is Anything But Cheap
One detail worth noting, however, is that the additional $1 billion is reportedly not related to a possible production plant for Audi. For context, Audi and Scout both fall under the broader Volkswagen umbrella, with the four-ring brand continuing to struggle for footing in the U.S. market as its vehicles are subject to hefty import taxes. The situation is especially telling, given that its direct rivals, BMW and Mercedes-Benz, already operate U.S.-based production facilities.
Beyond the cost overrun, the situation could trigger greater political and taxpayer scrutiny, increasing pressure on Volkswagen to ensure Scout’s comeback story is a success.
Scout initially planned to offer its pickup and SUV exclusively as all-electric models before deciding to add a range-extended EV (EREV) option – a move that may prove timely, given how newer policies under the current administration, like the end of the $7,500 federal tax credit, have slowed EV adoption.
Scout Motors
The Pressure Is On
While EREVs still rely on electric motors for propulsion, they use a combustion engine solely to recharge the battery, an approach aimed at easing so-called range anxiety. The first models, the Traveler SUV and the Terra pickup, are scheduled to arrive in 2027, with the EREV variant reportedly capable of delivering up to 500 miles of range, placing it in the same ballpark as the Lucid Air Grand Touring, currently the longest-range production EV.
What will be interesting to see is how the expected starting price under $60,000 plays out, especially as demand for more affordable electrified options continues to grow.
Scout Motors
