Volkswagen searching US sites for Scout electric pickup factory

Volkswagen is looking for sites in the US for building its factory that will produce Scout electric pickup trucks and SUVs. Volkswagen CEO Herbert Diess has revealed the information at the World Economic Forum in Davos, Switzerland. He said that the German auto major is assessing brownfield sites and some greenfield locations as well, reports Reuters.

Volkswagen AG CFO Arno Antlitz too said that the auto company does not rule out an eventual share listing for the Scout brand. These point out at the seriousness of the automaker about its electric pickup truck project. The Scout electric pickup trucks and SUVs are expected to play a crucial role in Volkswagen AG's overall electrification strategy. The auto major has already planned to invest $7.5 billion over the next five years to expand its US product line, including the addition of an electric pickup truck, revealed Antlitz. The Scout brand is at the centre of this strategy.

The Scout brand of cars will be sold under a separate entity from Volkswagen. However, the ownership will be in hands of the German automaker. Volkswagen is also expected to adopt a direct to customer (D2C) model for its Scout brand electric vehicles, which would be a similar strategy to Tesla.

Volkswagen has been aiming to grab a sizeable chunk of the electric vehicle market. The automaker has already promised a huge investment in the segment. Also, the US being one of the major markets for electric vehicles and several automakers already introduced their respective products in the electric pickup truck segment, where demands and interest is surging at a fast pace, Volkswagen doesn't want to stay behind in the race. The Scout brand comes important in this space.