Volkswagen Group may involve independent specialist for US EV truck project

In May this year, Volkswagen Group had announced that it planned to launch an all-electric pick-up and SUV specifically for the North American market.

The new vehicles will be designed, engineered, and manufactured in the US, the German brand said. For this to happen, a separate, independent company would be established in the US.

The name Scout was registered by VW Group for the model in the electric vehicle space. The first prototypes are to be unveiled in 2023 and production is scheduled to start in 2026.

The electrified Scout brand will be built upon a new technical platform concept which brings new pickup and RUV credibility beyond the existing Volkswagen Group portfolio.

The latest on this is that VW may consider an independent specialist to do the job on a turnkey basis. The name of Canada-based Magna, a well-known contract manufacturer that has experience making various types of new vehicles for third-party companies has been doing the rounds as a possibility.

Analysts reckon that given the time frame that VW Group has in mind for developing the EV product and launching it, will involve huge costs, time, and effort especially as an all-new platform is involved, so it makes sense to have a specialist builder like Magna involved.

Herbert Diess, CEO Volkswagen AG had earlier said: “After Volkswagen’s successful turnaround in the US, we are now taking the opportunity to further strengthen our position in one of the most significant growth markets for EVs. Electrification provides a historic opportunity to enter the highly attractive pick-up and R-SUV segment as a Group, underscoring our ambition to become a relevant player in the US market.”

Success in the R-SUV and pick-up segments is being seen as a key factor to increasing profitability in the US and achieving the targeted market share of ten percent for the German brand.