Possible Partnership With Foxconn In The Future For Volkswagen

Volkswagen is in talks with Taiwan's Foxconn to build vehicles for the revamped Scout brand, according to German publication Automobilwoche.

The Scout brand is an updated version of the 1960s International Harvester Scout, an off-road vehicle produced by then International Harvester, now Navistar International Corp. Volkswagen Group acquired the Scout Brand through a 2020 merger with Navistar. The Scout hasn't been produced since the 1980s.

Volkswagen Group placed an emphasis on the Scout being an American vehicle and floated the idea of manufacturing the redesigned Scout entirely in American factories. The confirmed plans for the Scout saw it marketed as an electric pickup and SUV. There were reports in April that Volkswagen was looking into constructing a new plant alongside an already existing one in Chattanooga, Tenn.

"So, the focus will clearly be on electric cars, which we see as a historic chance to gain market share in the United States," VW CEO Herbert Diess told reporters during an earnings call.

Volkswagen later confirmed in May that Scout trucks and SUVs will be designed, engineered and manufactured in the United States for American customers. Automobilwoche's VW Group sources reported on Tuesday that the company is in talks with the Taiwanese Foxconn.

Best known for being a manufacturer of Apple's iPhone and various other smartphones, Foxconn has expanded into electric vehicles for auto brands. The company aims to control 5% of the EV manufacturing market by 2025.

Foxconn isn't the only company Volkswagen Group has spoken to, as reported by Automobilwoche. A subsidiary of Magna International, Magna Steyr, has been interested in building a plant in the United States and Volkswagen Group could take advantage of such a partnership.

Another option would be for Volkswagen to build its own plant for the Scout vehicles.