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VW subsidiary is building a new plant in the USA - but fears of a new Trump presidency are growing

2024-02-20T20:12:03.779Z

Highlights: VW subsidiary is building a new plant in the USA - but fears of a new Trump presidency are growing. Production is scheduled to start in two years, but it is questionable whether the calculation will work. Ford offers good electric pick-ups with the F-150 Lightning, GM with the Chevrolet Silverado, Tesla with the Cybertruck and Rivian with the R1T. The market share of electric cars is growing, but the big breakthrough seems to be missing despite government support. Things could get even worse if US presidential candidate Donald Trump abolishes subsidies for electric cars as announced.



As of: February 20, 2024, 9:00 p.m

By: Markus Hofstetter

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VW wants to increase its market share in the USA with electric pick-ups.

Production is scheduled to start in two years.

But it is questionable whether the calculation will work.

Blythewood (USA) - Around a year ago, the new VW pick-up brand Scout announced the construction of a new production facility in Blythewood in the US state of South Carolina.

Now the time had come: On February 15th, the foundation stone for the two billion dollar plant was laid.

VW subsidiary Scout is building a new factory in the USA: 200,000 vehicles are to be produced annually

“We are here to celebrate the revival of an American icon and the relocation of American jobs.

On this land - with our hands and our technology - we will build great vehicles,” said Scout Chief Scott Keogh during the ceremony.

At full capacity, 4,000 employees at the plant will produce 200,000 vehicles a year.

The Scout construction site in South Carolina © Scout

Scout will produce two purely electric models that were developed independently of VW.

These are a pickup truck and an SUV, which should cost at least around $50,000 (46,440 euros).

Production is scheduled to begin in 2026, with the first vehicles expected to hit the roads shortly afterwards.

VW subsidiary Scout is building a new plant in the USA: the group wants to gain market share with pick-ups and SUVs

VW has high hopes for Scout.

The traditional brand is intended to help the Wolfsburg-based company finally get started on the US market.

The group currently only sells five percent of its cars there, but by 2030 it should be ten percent.

There are some doubts as to whether this hope is justified.

Because sales of electric cars in the USA are weakening.

As the

Handelsblatt

reports, citing data from Motor Intelligence, Americans' love for electric cars has cooled significantly.

While their sales grew by 65 percent in 2022, it was only 43 percent in 2023.

Competition has already taken over the market for electric pick-ups

The market share of electric cars is growing, but the big breakthrough seems to be missing despite government support.

Things could get even worse if US presidential candidate Donald Trump, if he is re-elected, abolishes subsidies for electric cars as announced.

US manufacturers have already responded to the difficult situation.

Ford has cut shifts, General Motors has postponed electric investments.

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In addition, the market is already occupied by competitors.

Ford offers good electric pick-ups with the F-150 Lightning, GM with the Chevrolet Silverado, Tesla with the Cybertruck and Rivian with the R1T.

And two years until production starts is a long time.

By then it could be too late for Scout to win over a broad group of buyers for its models.

Brand is leftover from an insolvent company

VW acquired the rights to the Scout brand with the acquisition of truck manufacturer Navistar in 2021. Navistar, in turn, emerged from the commercial vehicle division of the International Harvester Company (IHC), which went bankrupt in 1985.

In addition to agricultural machinery and trucks, IHC also built off-road vehicles, including the two-door Scout, which rolled off the assembly line from 1961 to 1980.

Source: merkur

All news articles on 2024-02-20

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