Volkswagen Group will build its own production plant in the U.S. for its new Scout brand, company sources told Automotive News Europe sister publication Automobilwoche.
The automaker was considering using contract manufacturers Foxconn or Magna to build the vehicles.
However, those plans are off the table.
"The decision to build the plant ourselves has been taken," company sources said.
VW owns the rights to the Scout brand and wants to revive it for the U.S. market as an electric brand.
The start of production is planned for 2026.
Initially, an electric pickup and an off-road SUV will roll off the production line.
VW Group's Audi brand may also build a factory in the U.S. to take advantage of subsidies offered by the Inflation Reduction Act, Audi CEO Markus Duesmann told the Frankfurter Allgemeine Zeitung in comments that were later confirmed by the company.
