Volkswagen AG (VW) might tap Hon Hai Precision Industry Co (鴻海精密) to make electric pickups and sports utility vehicles (SUV) in the US, a person familiar with the matter said, as the German automaker weighs partnerships to support its North American expansion.
VW is in talks with Hon Hai, known internationally as Foxconn Technology Group (富士康科技集團), about cooperating on a factory to make models for its rugged Scout brand, the person said, asking to remain anonymous.
Alternatives include partnering with Magna International Inc’s Magna Steyr and — the least likely option — VW building a factory on its own, the person said.
Photo: Reuters
Volkswagen is “very happy with the progress that Scout is making, and the enthusiasm they are already able to spark,” the company said in a statement, declining to comment further.
Hon Hai did not reply to requests for comment.
Europe’s biggest automaker is reviving the dormant off-road vehicle Scout brand to better compete in the lucrative US pickup and SUV market, but it is running late.
VW plans to unveil prototypes next year and begin production in 2026 — years behind similar models from Ford Motor Co, General Motors Co and Rivian Automotive Inc.
Success in the world’s second-biggest auto market has eluded the manufacturer due to its lack of larger models popular with US drivers.
Hon Hai, the primary assembler of iPhones for Apple Inc, has been looking to expand in the fast-growing electric vehicle (EV) market. The company last year unveiled its first electric concept vehicles and in May completed a transaction to acquire a Lordstown Motors Corp factory in Ohio for US$230 million.
Hon Hai is also involved in Saudi Arabia’s bid to build up a local EV industry.
On Tuesday, Ceer, a joint venture with Saudi Arabia’s Public Investment Fund, said it secured a 1 million square-meter plot within the King Abdullah Economic Center in a deal worth about US$96 million.
Construction on the site, which is near a major Red Sea trading port, is scheduled to start early next year, with initial models of the sedans and SUVs set to be available by 2025.
While sales for VW’s main brand in the US climbed 15 percent to about 375,000 units last year, that is still a far cry from the more than 500,000 vehicles the company delivered during the late 1960s and early 1970s, when its Beetle and minibus proved popular.
VW chief executive officer Oliver Blume identified success in the North American market as one of his 10 priorities after taking over from Herbert Diess in September.
Scout vehicles competed with the Ford Bronco and Land Rover and Jeep models from the 1960s until the business ceased production in 1980. VW bought the name as part of its acquisition of Navistar International Corp in 2020.
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