Scout's EV Factory Just Blew Past Its Budget
Scout just went over budget on its South Carolina EV factory.
The automaker is now reportedly spending $3 billion on its factory, 50% more than originally announced.
Insiders reportedly worry that this could bring Scout's spending to the attention of Volkswagen Group's top brass.
Scout—the 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.
Photo by: Scout Motors
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. But for its parent company, this means spending some additional coin that wasn't exactly planned.
Per Handelsblatt (translated):
The increased spending is likely to reignite the debate within the company. "Scout is under pressure. Wolfsburg is watching developments in South Carolina very closely," said a company insider.
Perhaps a bigger question is Scout's timing. Though it's entering the North American electrified vehicle market in a time where EVs aren't exactly gaining traction stateside, the company maintains that it's optimistic about its prospects. Scout CEO Scott Keogh said as much in a recent interview with InsideEVs.
Indeed, its Traveler SUV and Terra pickups have racked up 150,000 reservations and are hotly anticipated as Rivian-like lifestyle vehicles. In particular, its range-extended EV options top the reservation charts. That could be a boon—and separate it from the battery-only competition.
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