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March 03, 2023 04:43 AM

VW board said to discuss two new N. America plants

VW's board is expected to approve a site in the U.S. to build its Scout brand, while discussions about a battery factory, likely in Canada, are ongoing.

Reuters
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    International-Harvester-Scout

    The Scout SUV had a successful run from 1961 to 1980 when it was built by International Harvester. VW is reviving the brand.

    HAMBURG – Volkswagen Group's supervisory board was meeting on Friday to discuss plans for two new factories in North America,  two people familiar with the matter said. One will be a production plant and the other will be a battery cell factory.

    While the board is expected to approve a site for its Scout brand in the U.S., discussions around a gigafactory are open-ended, the sources told Reuters.

    Reviving the Scout brand is a key part of VW's target to gain 10 percent market share in the U.S.

    VW Group CEO Oliver Blume in December said the automaker had begun searching for a site for a battery cell factory in North America, adding Canada was "one logical option" because of its raw material resources.

    "We are still working hard to find a suitable location for our first gigafactory in North America and are in good, constructive talks," a VW spokesperson said on Friday. No decision has been made yet, the spokesperson said.

    Other issues on the meeting's agenda are Volkswagen's annual results and its dividend, the sources said.

    Related Article
    VW will go it alone on new U.S. plant for Scout brand
    VW confirms revived Scout will be independently run brand selling electric trucks
    VW confirms it is looking in Canada to build first North America cell plant
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