Volkswagen Picks Magna Steyr To Develop Scout EVs, Prototypes Anticipated In 2024

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Whenever you consider corporations that manufacture autos, Magna Worldwide will not be in your checklist, however it’s actually the biggest Tier One provider to the automotive business and operates a number of meeting crops around the globe that construct automobiles for different corporations. Considered one of its subsidiaries, Magna Steyr primarily based in Graz, Austria, has been tapped by Volkswagen Group to develop its new line of Scout electrical autos.

In 2002, Magna Steyr took over Daimler’s Eurostar automobile meeting facility, which has the capability to provide roughly 200,000 autos per yr, making it the biggest contract producer for cars on this planet.

Based on Wikipedia, Magna Steyr developed Mercedes-Benz’s 4Matic all-wheel drive system and was the only producer of all E-Class 4Matic fashions between 1996 and 2006. The corporate additionally undertook substantial growth on the BMW X3 and manufactured all unique X3s in addition to the Aston Martin Rapide and Audi TT.

Wish to know what automobiles Magna Steyr at present manufactures? Right here’s the checklist:

• Mercedes-Benz G-Class (1979–current)
• Jaguar E-Tempo (2017–current)
• Jaguar I-Tempo (2018–current)
• BMW Z4 (2018–current)
• Toyota Supra (2019–current)
• W Motors Fenyr SuperSport (2019–current)
• Fisker Ocean (2022–current)

In March 2017 Magna Steyr began manufacturing of the brand new BMW 5 Sequence sedan along with BMW Group’s manufacturing plant in Dingolfing, Germany. The Sony Imaginative and prescient-S idea automotive was developed and inbuilt cooperation with Magna Steyr.

Magna Steyr To Develop Scout EVs

That’s fairly a resume for a corporation most individuals have by no means heard of, which is why Volkswagen Group felt snug hiring Magna Steyr to develop its Scout rugged off-road electrical autos. The event contract is value €450 million, in accordance with German information supply Kleine Zeitung, which cited sources who declare to be conversant in the association between the 2 corporations.

Based on Automotive Information Europe, the order from Volkswagen is Magna Steyr’s greatest growth contract thus far. Growth work is already underway by Magna engineers in Graz and the US, and the 2 Scout autos — a pickup truck and an SIUV modeled after the unique Scout autos — must be prepared for sequence manufacturing by the tip of 2026 following in depth prototype testing.

Volkswagen mentioned in March it should construct a US meeting plant to fabricate Scout autos in Blythewood, a city close to Columbia, South Carolina, which  is about 350 miles east of its manufacturing unit in Chattanooga, Tennessee. That manufacturing unit may have a capability of greater than 200,000 autos yearly, which is a complete lot of rugged off-road electrical autos for individuals to drive to work or the mall whereas pretending they’re cowboys on the set of Yellowstone. Volkswagen appears to suppose it has a deal with on what American automotive patrons need and it may very effectively be proper.

Scout Prototypes On The Highway Subsequent 12 months

A report by Autoblog says Scout Motors CEO Scott Keogh spoke with Automotive Information (paywall) just lately and supplied some info on the event and the timeline for these Scout autos. Earlier this yr, Scout employed Chris Benjamin as lead designer. Benjamin’s 25 years within the auto enterprise together with six years at Fiat Chrysler/Stellantis overseeing inside design for Chrysler, Dodge, Jeep, and Ram. Keogh mentioned, “The design of the product is, I’d say, 85, 90, 95 % of the best way there. Proportions readily dialed in, exterior design dialed in.” The total passenger area is a bit additional out, however he expects to sit in a full-sized inside mannequin this coming week.

Autoblog says there are about 300 individuals working for Scout Motors at current with one other fifty or so being added every month. Along with pulling in-house engineering expertise from the VW Group — Scout chief technical officer Burkhard Huhnke being one distinguished instance — Scout can also be attracting staff from rivals within the electrical automobile area, together with Tesla and Rivian. It didn’t identify any of these current recruits to the reason for electrified off-roading.

Early growth mules are anticipated to roll out of locked garages early subsequent yr, most likely across the identical time Scout breaks floor on its manufacturing facility in South Carolina. Keogh confirmed to Automotive Information that Magna won’t manufacture the Scout prototype autos. The Scout division will deal with that job. The prototypes will experience on the Scout-specific, ground-up chassis developed with Magna’s help, which Keogh described as a “100% succesful, American, strong, full platform.” It has handed all of its assessments on paper and in simulations. The highway trials scheduled to start subsequent yr will present suggestions on these designs.

Reveal Coming In Q3

Scout plans to disclose its first pre-production autos within the third quarter of 2024. Keogh mentioned the SUV would be the first one to market as a result of Scout was most identified for being “a rugged SUV model.” The total dimension pickup truck isn’t due in the marketplace till an estimated six or seven months after the SUV, so prototypes of the truck will not be revealed till 6 months or so after the SUV breaks cowl. Precise manufacturing isn’t anticipated to start till late 2026, which suggests the primary Scout autos that clients can truly purchase could also be 2027 fashions.

Earlier this yr, Scout reaffirmed its dedication to a $40,000 SUV as the primary mannequin, though it isn’t clear whether or not the corporate is assuming that would be the efficient value after any federal tax incentives. That subject is considerably fraught with uncertainty proper now as new Treasury guidelines for battery supplies and parts are set to enter impact on January 1, 2024.

We do know that Volkswagen is planning a brand new battery manufacturing unit in Canada, presumably to ensure its US made electrical autos a prepared provide of US compliant batteries to allow them to proceed to qualify for federal EV incentives. A 4 door 2024 Ford Bronco begins at round $41,000; the least costly 2024 Volkswagen ID.4 begins at about $40,000. Peering into the dim mists of the long run and taking into consideration the quite a few information accounts claiming the worth of EV batteries is anticipated to development downward in coming years, it appears believable that Scout may have not less than one mannequin that begins below $40,000 by 2027.

Scout And Franchise Sellers

By creating Scout as a discrete firm promoting electrical autos, Autoblog says it expects Scout to skip a conventional dealership community and far of the overhead concerned. We predict that assertion could also be a bit too blasé. There isn’t any method Volkswagen sellers are going to sit down quietly by whereas the corporate takes a slice out of their enterprise mannequin.

We will see the brand new firm doing extra of its enterprise on-line, with sellers performing as take a look at drive places, supply brokers, and repair amenities. Sellers spend extraordinary quantities of cash on financing these a whole bunch of autos on their heaps, to not point out property taxes on the land they occupy. There are vital financial savings obtainable to them with a “simply in time” construct to order system.

Nothing ever stays the identical. The normal dealership mannequin is sure to adapt and alter because the EV revolution strikes ahead. Extra web gross sales are a given. How sellers alter to alter will decide their viability. Will probably be attention-grabbing to see how Volkswagen and its franchise sellers deal with the transition to electrical automobiles.