Scout's EV Factory Just Blew Past Its Budget

"Scoutthe blue-collar Volkswagen spin-off that's giving the Germans a chance to launch an electrified truck in the U.S.is becoming a lot pricier to the Volkswagen Group than originally anticipated. According to new reporting from Handelsblatt, the Scout factory currently under construction in South Carolina will now cost an estimated $3 billion. That's up 50% from what the automaker originally planned to spend on the factory before the company collects any revenue."

"Scout confirmed the increased figure to Handelsblatt. The original $2 billion was merely a "guaranteed minimum investment," a company spokesperson told the outlet. The company also said the construction still fits with Scout's overall business plan. One of the reasons for the increase is a $300 million facility expansion announced in September in the form of a supplier park. Scout says that the expansion will increase efficiency and create a number of additional local jobs to help fuel its factory and pump out electrified trucks."

Scout's South Carolina EV factory budget increased to $3 billion, 50% above the originally planned $2 billion guaranteed minimum. The company confirmed the higher estimate and said construction remains aligned with its overall business plan. A $300 million supplier park expansion announced in September contributed to the rise by adding capacity, efficiency improvements, and additional local jobs. Insiders warn the higher cost could reignite internal debate at Volkswagen Group, with Wolfsburg monitoring developments closely. Executives express concern about timing amid slow U.S. EV demand, while Scout leadership remains optimistic about future vehicle prospects.

Read at insideevs.com