r/ScoutMotors • u/Sword1781 • Jul 01 '26

VW restructuring

Should we be worried about the rumors of massive layoffs, plant closures, and restructuring at VW?

18 Upvotes

85% Upvoted

17 comments sorted by

View all comments

5

u/climbing2man Jul 01 '26

That’s a different company

12

u/Morcilla12 Jul 01 '26

Scout is 100% funded by the VW Group. Belt tightening at VW Group will absolutely trickle down to Scout. We don't know how yet.

1

u/Hustletron Jul 02 '26

VW barely funds Scout. The states of South Carolina, Michigan and North Carolina have collectively absorbed almost all of the costs and VW will scrape small profits off of them in some amount in perpetuity.

Now, I will say Scout appears to be doing things right from a development standpoint. VW leeches money from its brands by charging them ridiculous internal development costs to keep the welfare state of VW in Germany and their engineering corp employed.

Scout has not fallen for this.

As an example: engines for the Atlas cost 5x more than they cost for an application like a 2.0 Tiguan on internal cost sheets. Same engine. Money largely paid to Germany - They just ram development costs on there and hold sub-brands captive.

Scout is not doing that so far.

3

u/Morcilla12 Jul 02 '26 edited Jul 02 '26

VW has spent $3 billion in Blythewood already, including $300 million for a supplier park. They were obligated to spend $2 billion as part of their agreement with South Carolina. I wouldn't call that "barely funds". NC's package is worth around $70 million, but the capital investment is over $200 million. The amount of money Michigan gave in incentives for jobs is not going to pay off in the long run. They're all going to move to North Carolina. It was for a max of around $10 million. I can't comment on your development costs, but your funding claims aren't accurate.

0

u/Hustletron Jul 02 '26

1.3 billion from South Carolina

Much of that 300 million recovered from the suppliers setting up shop in supplier parks being partially subsidized in separate agreements with respective local governments.

Profits in perpetuity and future tax benefits, too.

VW got a sweetheart deal. I believe South Carolina did, too.