VW’s new Scout Motors sub-brand will receive a $10 million grant from the Michigan Business Development Program to establish a new innovation center in the city of Novi.
The new facility will employ up to 200 people and serve as a hub for the firm’s product design and engineering teams. It will span approximately 80,000 square feet and employ workers from both the local markets as well as broader domestic and international markets.
The Detroit News reports that VW considered other locations, namely sites close to the plant it will assemble in South Carolina and begin production at by the end of 2026. The $10 million grant is being supported by the governing body of the Michigan Economic Development Corp.
Scout is preparing both an all-electric pickup truck and an electric SUV, both of which will be manufactured at the $2 billion South Carolina plant. Limited details about the two models are known at this early stage but last month, reports surfaced suggesting that the carmaker has enlisted the help of Magna Steyr in the development of the two vehicles. The VW-owned brand is eager to ensure its vehicles can rival the Ford Bronco and Jeep Wrangler.
Read: Scout Motors Teases New SUV And Pickup EVs As It Confirms $2B South Carolina Factory
Magna Steyr would be a logical choice for VW to work alongside given that it is responsible for assembling the Mercedes-Benz G-Class, a formidable off-roader in its own right, as well as the Fisker Ocean and Jaguar I-Pace EVs.
Teasers released of the Scout SUV and pickup truck models reveal that they will have designs reminiscent of classic Scout models while also adopting boxy shapes not dissimilar to other popular off-roaders on the market. The plant where they will be built will have the capacity to build 200,000 vehicles annually but whether or not that figure is reached will depend entirely on how popular the Scout models prove to be.
