As the $2 billion South Carolina plant nears completion, Scout Motors has sold about 212,000 vehicle reservations. The count includes the Terra pickup truck and Traveler SUV, CEO Scott Keogh told CNBC. At the same time, the over $2 billion Blythewood Production Center is in its final stages of construction. Furthermore, the company expects full production to start next year.
The mix of the reservation is skewed toward combustion backup. Furthermore, about 87 percent of buyers chose extended-range electric vehicle models. Meanwhile, about 75 percent chose the Traveler SUV over the pickup. The company, which is backed by Volkswagen, will begin full production in 2028, with deliveries commencing then.
Other Projects
In other industrial news projects, Lee County has agreed to a tax incentive plan for Mesabi Metallics $15 billion Iowa steel plant. On Nov. 11, the Board of Supervisors unanimously approved the term sheet and a resolution in support of the term sheet. The vote is another milestone for the complex that leaders say will create thousands of jobs in southeast Iowa.
The framework sets three payments. During development and construction, Mesabi Metallics would pay up to $10.5 million to the host community. In addition, the company has to ensure that the assessed value of its property increases by at least $112 million before the tax rebate is received. Meanwhile, it would pay Lee County $50 million over 20 years in lieu of additional property taxes.
Scope of the Scout Motors South Carolina plant build
The plant outside Columbia is about 85 percent complete, per Keogh. But crews continue to lay the groundwork for supporting infrastructure and a $300 million supplier park around the main facility. Construction is in its final stages, Scout said Thursday.
Both powertrains are available in the product line-up. All-electric versions are offered in parallel with EREV variants, which include an engine as a backup generator for the electric motors and batteries. Hence, the company is going to introduce EREVs first and then EVs, based on the split in reservations. Scout will also begin with mid-range models, not the top-of-the-line trims, which is a conscious departure from the norm.
“The No.1 thing for me is I want to go get the best volume as soon as possible,” Keogh said. “In my mind, it’s how quick can you get to 100,000 units? It’s at 100,000 units where you can start to punch through.”
Outlook for the Scout reservation book
Keogh anticipates that the 212,000 count will double by the time customer production starts. Nevertheless, he repeatedly warned that reservations are not a guarantee of sales. Strong interest did not translate to conversions over the past 10 years of EV launches in the industry. Therefore, his goal is to have an order book of 12 to 18 months before production begins. I think we could easily be over 400,000 with reservations without doing too much work,” Keogh said. The key for us is how much of the initial production can we 100% presell?
The strategy also has a competitive background. Rivian was criticized earlier this year for releasing the most expensive versions of its R2 SUV first. Meanwhile, Scout’s volume-first strategy targets the same early-production window, but at lower price points. So, the completion of the plant and the delivery in 2028 are now the determining factors. The question is whether 212,000 reservations turn into the order book the CEO desires.
Project Overview: Scout Motors South Carolina plant
- Project Value: $2 billion-plus plant
- Location: Blythewood, near Columbia, South Carolina
- Owner: Scout Motors, Volkswagen-backed
- Supplier Park: $300 million
- Status: About 85 percent complete
Scope
- Terra pickup and Traveler SUV
- EREV and EV powertrain options
- Supplier park under installation
- Full production expected next year
Project Highlights
- 212,000 reservations and counting
- 87 percent pick EREV models
- 75 percent choose Traveler SUV
- Mid-level trims launch first
Key Developments
- Construction in final phase
- Deliveries begin in 2028
- EREV-first launch strategy set
- 12-to-18-month order book target
Key Challenges
- Reservations must convert to sales
- Infrastructure and park unfinished
- EV market adoption still slow
- Rival launches set high bar
Outlook
- Production starts next year
- Reservations could top 400,000
- First deliveries arrive 2028
- Volume goal: 100,000 units
Leave a Reply