Reuters- South Carolina Governor Henry McMaster signed legislation on Monday that authorized $1.29 billion in state incentives for Volkswagen's off-road brand Scout Motors to build a $2 billion manufacturing plant for trucks and SUVs.
The project could get up to $180 million in job development tax credits based on hiring, according to South Carolina Commerce Secretary Harry Lightsey.
In May, VW said it would introduce the Scout off-road brand in the United States, offering new electric pickup and sport utility vehicles. Scout hopes to create 4,000 jobs and produce 200,000 Scout vehicles annually.
Production is projected to begin by the end of 2026 and groundbreaking is planned for mid- 2023.
Scout CEO Scott Keogh told reporters that they looked at 74 sites in a dozen states. The governor put together an EV council to make sure his state was ready. Keogh said Scout wants to act like a startup, be nimble and take advantage of this moment. Scout, an independent U.S. company owned by Volkswagen Group, said it is evaluating the potential for outside investment but hasn't made any announcements.
Volkswagen has moved away from cars in the United States. SUVs now account for about 80% of the U.S. sales of the group's VW and Audi brands. In the early 1980s, VW sold a pickup in the United States.
Scout and Travelall vehicles made by International Harvester were the precursors to the popular SUVs from Detroit's Three automakers, such as the Ford Bronco and General Motors Co's Chevrolet Suburban.
Volkswagen first revealed it was considering using the Scout name late in 2021. The Traton business of the automaker acquired U.S. truck maker Navistar in 2020, which owns the name.
Monday was the latest major auto announcement for South Carolina, home to BMW's U.S. operations and its largest plant by volume. The state has over 500 automotive-related companies and 75,000 automotive industry employees.