German automotive icon Volkswagen is planning to develop a new factory in the United States which will be focused on assembling its recently proposed Scout brand of electric pick-up trucks and SUVs.
According to a Reuters report, Volkswagen AG chief executive Herbert Diess says disruptions to Volkswagen’s supply chain in Ukraine are currently “easing” and there is a “clear improvement” in semiconductor supplies.
Diess, who was speaking from the sidelines of the World Economic Forum conference in Davos, Switzerland, told Reuters he expects global production to recover through the rest of 2022.
“The situation from Ukraine is under control now if nothing bad really happens anymore we won’t lose too many cars,” Diess said.
In line with Volkswagen’s strengthening position, Diess and VW executives also confirm that the company is currently assessing “brownfield sites and some greenfield locations” for a new production plant to assemble its Scout electric trucks and SUVs.
Volkswagen announced earlier in May that it was planning to launch an all-electric off-road utility truck under its former sub-brand, Scout.
This revives the name of the classic International Harvester Scout SUV for a new generation of electric SUVs and pickup trucks/utility vehicles (ute), with the first prototypes expected to be unveiled in 2023 and production scheduled to begin in 2026.
The re-launch of the Scout sub-brand may even lead to an eventual public offering, but Volkswagen chief financial officer Arno Antlitz isn’t committing VW Group to anything, just yet.
Scout will be part of Volkswagen’s broader effort to expand its presence into the United States market, to include more than just passenger vehicles, but also commercial options.
Diess, speaking earlier in May, said that electrifying the brand provides a “historic opportunity to enter the highly attractive pick-up and R-SUV segment as a group” and that it will “further strengthen our position in one of the most significant growth markets for EVs.”
Volkswagen is reportedly set to spend €7 billion over the next five years to bolster its US EV product line, which includes the development of the Scout electric pickup truck.
As for Volkswagen’s immediate battery supply needs – which have been affected by the perfect storm of global supply constraints – Diess said he is confident in his company’s ability to secure enough batteries to supply its EV production through 2025.
“Are there enough batteries? Probably not. Are there as many batteries as we ordered? Yes, for sure,” Diess said.
Joshua S. Hill is a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years. He has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012. His preferred mode of transport is his feet.