There are several things and thoughts that are troubling, based off what you've said previously.
- That Audi plans to build the Scout.
- That the US facility is scrapped.
- That Audi plans to build the Scout.
Ok, sorry, let's back up.
First and more importantly, I didn't mean to imply or say that Audi was building Scout. Not did I say the U.S. facility was scrapped or that Audi would build the Scout. All three of those things aren't true.
I don't like to publicly throw publications under the bus, but there are websites that write speculative articles all the time that are based on "things heard", "rumors", "insiders", "other website articles", etc., etc. The Electrek article pulls various, sometimes unclear, quotes and references to prior rumors to build this article. Let's start with Audi designer Marc Litche quote taken from an article in Autocar (a different publication):
"
I think there is space [for a rugged SUV in Audi’s lineup]. There is potential because there are only two premium players, and I think there is space for a third one."
Two things immediately. One, no context to the question asked prior to this answer, and two, they filled in a vague quote by using brackets "[ ]" and entered their own text "[for a rugged SUV in Audi's lineup]" to the quote. Usually, this is done when the answer is something like, "I think there is space for one" where "one" has to be qualified. However, we don't know what the question was, so we don't know the context. I'm not saying this is intentionally misleading, but it's poorly done by either Electrek or Autocar. It is also abused quite a bit these days.
Either way, Marc Lichte is only saying, in his opinion, there could be room for a rugged Audi model someday. That confirms nothing concrete, but journalists run with these types of things all the time. I know, I used to be on that side of the fence. I was just a lot more careful to give the full context.
The next part of the Electrek article references another website that claimed Scout was looking to have Magna build Scouts in Canada. They even say in that other article that VW wouldn't comment but then gives this quote, "We are very pleased with the progress the Scout team is making and with the enthusiasm it’s already generating among current fans and future customers." Volkswagen didn't say that. We did. So they attributed the quote incorrectly in the article. We've said all along that we will build the Scout in America, and that's the plan. Stay tuned.
Then the Electrek article references an article that ran on the Autocar website, saying the original plan was for Audi to build Scouts. The article says:
"The initial plans called for Audi to build Scout models in a new US facility but were later scrapped. According to Autocar, the two brands may still benefit from each other."
First, this is poorly written as some of you have interpreted this as the Scout won't be built in America. What the article is referencing is another publication that wrote about a rumor that Audi was originally going to build the Scout, but that plan was scrapped. I don't know what original plan they are talking about, but the article is based on speculation and supposed "insider information". Audi isn't building Scouts and we are building them here in the U.S.
The Electrek article also talks about Magna building batteries. We haven't announced where we are getting our batteries from at this point. We shop around a variety of sources when it comes to batteries due to costs and potential availability. For instance, the VW ID4 sources batteries from two different companies. VW Group is ramping up production of its own in-house "prismatic" battery at its own new factories (one built so far in northern Europe with a second in Germany coming soon, plus at least four other locations around the world). VW Group has spun off the battery division, and they are calling it PowerCo. VW claims a 50% cost reduction savings by making them in-house (and up to 30% better range and less dependence on certain minerals). I would think ideally we'd like to use those new PowerCo cells, but we don't know this far out what availability will be, and we ideally need them built in America using North American minerals if possible as that would help us take full advantage of the Inflation Reduction Act. Battery pricing is also a commodity; while we need to lock in a certain volume, we want to do that closer to production. That's the long version of the battery sourcing, and it is ongoing.
Scout is a clean sheet of paper design. It is an all-new EV platform not currently used in the VW Group companies. It will utilize unique components made to Scout specifications. It will be built here in America. Honestly, so long as we do our best to honor the badge, heritage, and design, give it rugged credentials that will hang with the best of them, and offer compelling packages to appeal to a broad group of buyers, everything should be great.
Don't hold me to this, but right now, it looks like the factory location will be the next big thing to announce. We should also have our technical platform (all-wheel drive systems, motors, and chassis) to tell you about later this year. The concept introduction could get pushed out, but we'll know more soon. This is the difficult part of telling people what's coming and when. If the date has to move due to logistics, supplier issues, building delays, etc., etc. then everyone (including us!) is disappointed.
I didn't go into all this detail earlier because I didn't want to rip apart yet another speculative article. Chris and I will continue to do our best to keep all of you informed and clarify as much as we can talk about. This is probably the most challenging period for us to do that, as *so* many things are still being negotiated or shopped around to multiple suppliers and vendors. There are also going to be things that go our way and setbacks that we will have to come back here to tell you about. That's the nature of the business.
Sorry for the long post. Hope that helps. ?
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