Volkswagen has turned to Magna Steyr, an Austrian automotive manufacturer and engineering company, for help developing rugged vehicles for its revived American brand, Scout. Local newspaper, Kleine Zeitung, reports that the deal is worth €450 million (US$492 million at current exchange rates).
The German car group announced that it would be bringing back the Scout brand in 2022 and later confirmed the construction of a $2 billion factory in South Carolina for electric vehicle production. While details have been limited, the company has confirmed the development of an SUV and pickup truck.
Now, reports suggest that the company is enlisting the assistance of Magna Steyr in the development of these vehicles, with a focus on creating authentic off-roaders to compete with established models like the Ford Bronco and Jeep Wrangler, making the choice of partner a logical one.
Read: VW’s Scout EV Pickup And SUV Teased In Official Presentation
Magna Steyr is responsible for manufacturing the Mercedes G-Class SUV, which, despite its higher price point and luxury positioning compared to the American models mentioned earlier, has established a strong reputation for its exceptional off-road capabilities.
In addition, the company has plenty of experience with electric vehicles. Magna produces the Jaguar I-Pace and the Fisker Ocean. Its website also touts its ability to develop and engineer complete vehicles for customers.
We have reached out for comment from Scout, but have not yet heard back. A Magna spokesperson told AN that it does not comment on speculation.
Getting help from a company with serious off-roader experience will likely be important for Scout, as it hopes to make a name for itself as a legitimate player in the space, and live up to the legacy of the International Harvester Scout from the ’60s and ’70s that inspired it.
Part of a plan to attract more American customers, Volkswagen hopes that Scout will be a hit for it in a market that it has long struggled to capture. Production of its vehicles is expected to start in 2026.
