Volkswagen is pushing forward in electric vehicle (EV) production and says there has never been a better time to build an EV factory in the U.S.
Key Details
- Volkswagen is building a $2-billion EV manufacturing plant in South Carolina to produce electric SUVs as part of Scout Motors Inc.
- The factory is set to open in 2026 and will be able to create 200,000 EVs per year.
- With the new incentives geared toward EV production in the U.S., Scout Motors CEO Scott Keogh says, “there is no better time to build a manufacturing plant in America.”
Why it’s news
Incentives for EVs made in the U.S. are bringing many manufacturers to the country to capitalize on what Scout Motors CEO Scott Keogh calls the EV “Gold Rush.”
The Inflation Reduction Act provides incentives such as a $7,500 tax credit for EVs mainly produced in the U.S. These incentives have made many large car brands bring production to America and decrease reliance on other countries for vehicle parts—mainly China.
VW is capitalizing on the incentives by creating a $2 billion plant in South Carolina that will build Scout vehicles for the first time since 1980, but this time the vehicles are electric. The electric SUVs are playing on the nostalgia of the old vehicle while also garnering the tax credits for U.S. production.
“We view it simplistically a little bit like the Gold Rush,” says Scout CEO Scott Keogh. “There’s never been a better time to build a factory in America.”
The German company originally considered building the factory overseas. However, after the Inflation Reduction Act was passed, the company decided the most logical route would be to build in America to receive money from the act while broadening its sales in the U.S.
“If you look at all the, let’s say, opportunities that are coming from the states and the Inflation Reduction Act, the smartest way to handle the factory was to do it yourself,” says Keogh. “You wanted to get there early so you can get a good location, and if you got there late, you might miss it.”
