Volkswagen Group is reportedly to work with Foxconn Technology Group or Magna International to make the Scout-branded electric pick-ups and rugged SUVs in the US.
The partnership, if materialized, would fuel Foxconn's momentum in EV manufacturing.
According to Automobilwoche and Bloomberg, Volkswagen has talked to Foxconn and Magna about producing Scout models in America. Foxconn is a stronger candidate as it already owns an automotive production base in Lordstown, Ohio. Magna makes cars for OEMs through its subsidiary in Austria, Magna Steyr.
Volkswagen announced in May that it plans to electrify the iconic US brand Scout. The plan is to design, engineer and manufacture pick-ups and R-SUVs for the market. Scout aims to unveil the prototypes in 2023 and begin production in 2026.
Regarding the potential collaboration between Scout, Foxconn and Magna, Volkswagen only said it is pleased with the progress the Scout team is making and the enthusiasm the company is generating. Foxconn and Magna declined to comment.
Volkswagen reached 570,711 units in passenger car deliveries in North America for the first nine months of this year, according to its latest financial report. It was a 17.1% decline from 2021, with the US market decreasing the most. Oliver Blume, Volkswagen's new CEO, has included creating success in North America as one of his priorities.
Foxconn targets 5% of the global EV market share by 2025, according to Young-way Liu, the company's chairman.
The world-renowned electronics contract manufacturer has moved fast with its EV ambition, especially this year. In mid-November, Foxconn broke ground on a joint EV plant in Thailand with PTT, the country's state-run energy group.
The duo set up a joint venture, Horizon Plus, for the business. They plan to invest THB37 billion (US$1 billion) in the project.
Besides Thailand, Foxconn has gained a presence in Saudi Arabia and Indonesia. It has established a new company, Ceer, with the Public Investment Fund (PIF) of Saudi Arabia. According to Foxconn, Ceer will make EVs based on the contract design and manufacturing service (CDMS) model. Foxconn will develop the vehicles' electrical and electronic architecture (EEA) and software.
In October, the company announced the Model B crossover hatchback and the Model V all-terrain electric pick-up prototypes at Hon Hai Tech Day 2022.
Liu has said 2023 is crucial for Foxconn's EV expansion because it will have more customers, including two traditional automakers and three startups.
Its rival Magna-Steyr has been producing models for US-based Fisker and China-based BJEV in Austria. According to Magna's 2021 annual report, the complete vehicles segment generated over US$6.1 billion in sales, accounting for 16.8% of the company's revenue.
Electrek reported that Magna intends to manufacture EVs in the US to qualify for the federal tax credits under the Inflation Reduction Act.
