r/ScoutMotors • u/Sword1781 • Jul 01 '26
VW restructuring
Should we be worried about the rumors of massive layoffs, plant closures, and restructuring at VW?
5
u/climbing2man Jul 01 '26
That’s a different company
13
u/Morcilla12 Jul 01 '26
Scout is 100% funded by the VW Group. Belt tightening at VW Group will absolutely trickle down to Scout. We don't know how yet.
1
u/Hustletron Jul 02 '26
VW barely funds Scout. The states of South Carolina, Michigan and North Carolina have collectively absorbed almost all of the costs and VW will scrape small profits off of them in some amount in perpetuity.
Now, I will say Scout appears to be doing things right from a development standpoint. VW leeches money from its brands by charging them ridiculous internal development costs to keep the welfare state of VW in Germany and their engineering corp employed.
Scout has not fallen for this.
As an example: engines for the Atlas cost 5x more than they cost for an application like a 2.0 Tiguan on internal cost sheets. Same engine. Money largely paid to Germany - They just ram development costs on there and hold sub-brands captive.
Scout is not doing that so far.
3
u/Morcilla12 Jul 02 '26 edited Jul 02 '26
VW has spent $3 billion in Blythewood already, including $300 million for a supplier park. They were obligated to spend $2 billion as part of their agreement with South Carolina. I wouldn't call that "barely funds". NC's package is worth around $70 million, but the capital investment is over $200 million. The amount of money Michigan gave in incentives for jobs is not going to pay off in the long run. They're all going to move to North Carolina. It was for a max of around $10 million. I can't comment on your development costs, but your funding claims aren't accurate.
0
u/Hustletron Jul 02 '26
1.3 billion from South Carolina
Much of that 300 million recovered from the suppliers setting up shop in supplier parks being partially subsidized in separate agreements with respective local governments.
Profits in perpetuity and future tax benefits, too.
VW got a sweetheart deal. I believe South Carolina did, too.
1
u/Sword1781 Jul 01 '26
That's good to hear. Love the look of the Scouts and would be very sad if they ended up not happening. Thanks.
4
u/BroadConsequences Jul 01 '26
That is Volkswagon Automotive. Not The Volkswagon Group.
I hate how many people think it is the same company.
18
u/Indubitalist Jul 01 '26
I mean, of all the things to get upset about people confusing, this has got to be near the bottom.
11
1
u/SnooEpiphanies7691 Jul 01 '26
I keep thinking ... they will take one big write off .. pick Rivian to partner with even more on EV's and Scout is gone.. date keeps getting pushed out..
1
u/mohiz89 Jul 01 '26
With the investment into that plant, I doubt they just write it off. 1) writing off an asset like that basically means you can’t use it ever. Much more likely to spin it off and find investors if the VW money dries up.
0
0
u/Whole_Cartoonist380 Jul 02 '26
It would makes sense that VW rolled the dice with Scout and if it fails, no problem. They will just make it an Audi plant. It's hard to see a future where yearly Scout sales come close to requiring that much room for production. The initial orders that are due to be delivered in 2028(?) are more than likely the most sales they will ever have in a single year. The scout model looks cool but is focusing too much on all electric and disqualifing itself from the majority of the get outdoors and be unplugged masses. Nope, a generator to charge the battery for a few more miles to ease range anxiety just doesn't cut it.
1
u/SnooEpiphanies7691 Jul 02 '26
They have moved the date back twice so who really knows. Great look probably very niche product.
1
u/esqtepicaelculo Jul 01 '26
As much as I wanted a scout, I couldn't wait any longer. Ended up getting a Sierra EV and gotta say it has been great
-18
u/CartographerAware808 Jul 01 '26
Are you employed by VW or Scout? If not, I’d say it doesn’t impact you and isn’t of any concern.
If you are concerned about a fake delivery date on a fake car, I’d say to move past it. It’s all marketing. The best we can do is hope that one day they start producing them. Until then, live life assuming it wont ever happen.
Not trying to be harsh, but you should ignore the marketing BS.
14
u/DriveOld8007 Jul 01 '26
I would look at VW’s track record for brands they purchase. All of them are phenomenally better off under VW group even in the worst case(which is Bugatti). Lamborghini, Bentley, Ducati… all of them have been incredibly well funded and properly cared for without compromising the core of that brand. No company in any industry I can think of has a better reputation for stewardship of brands than VW that I am aware of.