Foxconn and Magna Steyer are in discussion with Volkswagen about producing its electric off-road cars under the Scout brand in the US.
Automobilwoche, A German publication reported this regarding the business circles. Additionally, Volkswagen is talking with Magna at the same time.
As opposed to what was previously believed, the discussions now include the potential manufacture of the Scout electric truck in addition to a development partnership. Magna itself had previously emphasized a desire to be more involved in the US market, and the Volkswagen group may make a good client.
In May, Volkswagen announced plans to revive the Scout off-road brand and establish a separate firm to produce Scout-branded trucks and SUVs beginning in 2026. These cars will be developed, engineered, and produced in the US for US consumers.
Unlike Magna, Foxconn already has an e-car manufacturing facility in the US. The Taiwanese company acquired Lordstown Motors and the former GM plant in Lordstown, Ohio, where Foxconn has been producing the Lordstown Endurance since September.
From 2024 on, the Fisker Pear will also be manufactured at the facility. With the current orders and the anticipated quantities, it is unknown if there would still be sufficient production capacity for Scout.
Foxconn, a Taiwanese company best known for producing the iPhone for Apple and defrauding Wisconsin residents out of millions of dollars when its plan to construct a touchscreen factory in the Badger State fell through, has been in the news a lot lately as it tries to change its business model to become a contract manufacturer for automakers. Foxconn, calls itself an impartial manufacturer.
It stated in October that it hoped to eventually produce cars for Tesla as well as anyone else willing to shift the burden of manufacturing to its large shoulders. It signed an agreement with the Saudi Arabian sovereign wealth fund earlier this month to produce automobiles there.
Although Foxconn is searching for ways to make the most of the Lordstown factory, building the Scout vehicles would be a win for the company even though they are low-volume goods for Volkswagen. In other words, it’s advantageous for both Foxconn and Volkswagen.
Of course, it would satisfy the requirements of the new EV federal tax credits, which stipulate that all qualifying vehicles must be completely manufactured in the US and employ battery materials and components that are legally obtained.
According to Automobilwoche, Volkswagen has discussed the possibility of producing its Scout-branded cars with Magna Steyer, a well-known automaker that also produces the Jaguar I-Pace. It is a division of Magna International and is looking to establish manufacturing here.
Because of the significant advantages offered by the Inflation Reduction Act, everyone is eager to construct electric cars, and solar panel and battery factories in the United States.
Volkswagen stated that it would not respond to rumors about the potential partnerships at this time, although a corporate representative did provide the following information:
“We are very pleased with the progress that the Scout team is making and with the enthusiasm it’s already generating among current fans and future customers.”
The circles mentioned in the article claim that it is doubtful that Volkswagen will construct a factory near its current Chattanooga Plant for the production of Scout electric vehicles. Regarding the proposed e-car plant in Wolfsburg-Warmenau, Blume appears to take a different tack than his predecessor Herbert Diess.
To be able to produce their electric vehicles in the USA, Audi is mentioned as being “hungry for a group-owned plant.”
However, it is unclear how many synergies would be produced between the Scout off-road versions on their platform and the electric Audis-based PPE or SSP.