Reports state that Volkswagen has turned to Austrian Magna Steyr. The company, famous for assembling the Mercedes G-Class, will help the German group develop its future Scout electric pickup truck and rugged SUV.

Local newspaper, Kleine Zeitung, reports a 450-million-euro deal. Volkswagen announced the return of the Scout brand last year, along with the confirmation of a 2-billion-dollar factory in South Carolina.

Confirmation

Since May last year, we’ve been excited at the return of the famous American Scout brand, a nameplate that dates back to the International Harvester Scout of the ’60s and ’70s. Volkswagen announced the brand would build an all-electric pickup and an all-electric rugged SUV.

We have no tangible information besides two drawings and a darkened front facia picture. However, things are moving behind closed doors. Last November, it was reported that Scout was seeking help for the development.

Austria to the rescue

Austrian newspaper, Kleine Zeitung, reports that Volkswagen has selected local Magna Steyr to develop its first vehicles. The Austrian company is famous for assembling the Mercedes G-Class and even the Jaguar I-Pace and Fisker Ocean. However, it also plays a crucial role in developing several vehicles. It even helped the Volkswagen Group in the development of the Audi TT.

According to Kleine Zeitung, both parties have already stroked a deal, with an order volume worth 450 million euros. This is reportedly the largest contract ever for Magna Steyr. The target for production start is set to late 2026.

It’s currently unclear if the Graz plant will roll out the first batch of Scout off-roaders. Previous reports state that Scout aims to produce its vehicle on US soil starting from 2027 with a target of 150,000 electric off-roaders for the first year.