Old Scout model at the new VW location in Blythewood: controversial project. Photo: AP
San Francisco, New York. Volkswagen’s new plant in the US state of South Carolina will be significantly more expensive than planned. According to Handelsblatt information, spending will increase by one billion to three billion dollars. Volkswagen had previously calculated two billion dollars to build the plant. This increases the financial requirements of a project that has recently been critically examined within the group – and which is also becoming more expensive for the state.
The pick-up subsidiary Scout confirmed the “updated number” in response to a Handelsblatt request. From the outset, Scout planned a “world-class production facility,” said a company spokeswoman. “Our investments have grown as we realize this vision.” The previously announced $2 billion was merely a “guaranteed minimum investment” under the agreement with South Carolina, the spokeswoman said.
The exact reasons for the cost increase are unclear based on current research. Scout points to an expansion of the factory site to include a “$300 million on-site supplier park” as a “significant factor in the updated total.” This increases efficiency and creates local jobs. Scout had already announced the construction of the supplier park in September.