German legacy automaker Volkswagen tapped Austrian automaker Magna Steyr to aid in the development of its resurrected Scout electric vehicle brand in Europe. According to local news platform Kleine Zeitung, orders have already reached approximately 450 million euros ($492 million).
Partnership details
Graz-based Magna Steyr will reportedly manage the production of the two VW Scout EV models in Graz, including an electric pickup truck and an SUV. It will primarily cooperate with VW in designing and manufacturing the two upcoming electric Scouts. Teslarati reported VW’s remarks early this year that the e-SUV will sell at approximately $40,000.
Interestingly, VW initially expected Magna Steyr to assemble the new Scout models in the US. However, the German brand decided to supervise production at its upcoming South Carolina factory in Columbia for $2 billion in the next two years.
Nonetheless, Magna Steyr will still build the Scout EVs in Graz, signifying the biggest development contract it received in history. VW will reportedly provide 450 million euros to Magna-Steyr for the Scout EVs’ local assembly.
These Scout EVs are slated to debut in the US market sometime in the first half of 2027. It aligns with the series production schedule, which will be ready by the end of 2026.
The Scout
In 2020, VW took over Scout as part of its acquirement of commercial vehicle maker Navistar. For those unaware, Scout was an iconic crossover originally developed by International Harvester and succeeded by Navistar in 1986.
It developed the Scout between 1961 and 1980 and reached cult status in the US market. All that said, the legendary crossover was among the pioneers in the SUV segment that currently leads major markets across the world.
With the Scout brand, VW seeks to build an independent unit focused on designing, engineering, and producing e-pickups and rugged SUVs. In fact, Scout Motors now has its own separate website, as asserted by Motor Mouth.
Volkswagen’s electrification progress
Volkswagen has committed to the electric vehicle transition for several years already. In the first nine months of the year, its global battery electric vehicle sales surged 45% year-on-year to 531,500 units.
This figure represents a notable 7.9% share in its global delivery volume, up from just 6.1% in the same period in 2022.
“We showed a good overall performance in our all-electric deliveries with a global increase of 45 percent in the first nine months. Despite the current general reluctance in the European market to buy battery-powered vehicles, we gained market share and remained the market leader in this segment. However, our order intake is below our ambitious targets due to the lower-than-expected overall market trend.”
Volkswagen stated in a press release
The local news report indicated that development is already underway in both the US and Graz. The models will be ready for series production by late 2026. As mentioned, the new American brand will launch in the US in early 2027.
VW’s move to partner with Magna Steyr is unsurprising, as it will enable the company to access Styrian engineering skills and knowledge, particularly the company’s major off-roader experience. Its partnership with the Austrian automaker highlights its commitment to expand its EV portfolio and tap into the surging demand for clean energy vehicles. It would be crucial for the company to achieve its target of 10% market share in the US.
