The US state of South Carolina is bringing the German car manufacturer Volkswagen to the USA with massive government incentives for climate-friendly investments. The planned two-billion-dollar construction of the plant for the SUV brand Scout will receive a subsidy of $1.29 billion, South Carolina Governor Henry McMaster announced on Monday.
The project could also receive up to $180 million in job development tax credits based on the number of hires, South Carolina Secretary of Commerce Harry Lightsey said. In May, VW announced plans to revive its Scout SUV brand in the United States with next-generation electric pickups and SUVs.
VW wants to double its market share in the USA to ten percent
“We looked at about 74 locations in a dozen states,” Scout CEO Scott Keogh told reporters. “The location was suitable, the governor himself put together an EV council…to make sure his state was ready to go.” The groundbreaking is planned for mid-2023, and production is scheduled to start at the end of 2026. According to VW, the plant will create up to 4,000 jobs and produce 200,000 Scout vehicles a year.
The USA is currently massively promoting investments in climate-friendly production with the “Inflation Reduction Act” (IRA). In Europe, concerns about a migration of factories have fueled. For the Wolfsburg-based group, the reintroduction of the brand is part of the strategy to double its market share in the United States to ten percent.