Volkswagen-backed Scout Motors, in nod to past, toasts start of construction of electric SUV plant

BLYTHEWOOD, S.C. — Scout Motors celebrated the start of construction on its $2 billion electric SUV factory in South Carolina on Thursday, not with a line of people in suits with shovels, but with a nod to the company’s gasoline heritage.

A fleet of vintage Scout vehicles rolled a brick from the site of the former factory in Fort Wayne, Indiana – where the rugged, angular precursors to SUVs were built in the 1960s and 1970s – to where the Volkswagen Group-backed new company is trying to revive the brand.

Scout thinks the market for its $50,000 electric SUV isn’t one of futuristic looks, but rather something similar to what the vehicles once looked like, but with all the environmental and driving benefits of an electric vehicle.

“While we honor Scout’s hardworking heritage and soul, we are ready for the future when it comes to manufacturing and technology,” said Christian Vollmer, member of Volkswagen’s expanded executive committee.

The plant in Blythewood, South Carolina, about 20 miles (32 kilometers) north of Columbia, is expected to open in 2027 and employ up to 4,000 people if Scout Motors can reach its goal of making and selling 200,000 vehicles per year.

South Carolina offered Scout Motors $1.3 billion in incentives, including plans to build a new interchange on Interstate 77 leading to the plant, a railroad bridge over the highway and massive improvements to sewer, electric and other surrounding weigh. There are also subsidies that the company can use for whatever is needed to get production going.

The Scout Motors facility will join BMW in Greer and both a Volvo and Sprinter plants near Charleston as South Carolina continues to try to become an auto manufacturing hub, especially in the electric vehicle market.

“The competition in the Southeast is fierce. People are leaving the Rust Belt and the snow and want to come here where there is economic freedom,” South Carolina Republican Governor Henry McMaster said on a sunny, 60-degree Fahrenheit day in mid-February.

Scout Motors made gasoline vehicles for about 20 years when it was owned by International Harvester. Production ended in 1980, but their shape and features continue to influence modern SUVs. Scouts have since had a niche fan base of collectors.

The Volkswagen company Scout Motors is entering a growing, but uncertain American market. Electric vehicle buyers get federal tax breaks, but a Republican victory in the 2024 presidential election could end that program and lead to tariffs that would likely raise prices.

“If you get it, it’s a strategic opportunity. But you have to plan without those things,” said Scott Keogh, CEO of Scout Motors.

Thursday was a party for Scout Motors. As the speeches were being delivered, the beeping sound of construction vehicles could be heard everywhere. The hundreds of guests had to stay on temporary paths to avoid the mud.

Keogh promises an environmentally friendly plant. Scout planned a meeting later Thursday with hundreds of residents who live nearby to show them what they were doing to protect the land and be a good neighbor.

He also promised a fun electric vehicle that won’t look like any other.

“What we’re doing here is relaunching an American icon,” Keogh said. “And we do it here in South Carolina.”