Volkswagen’s new production facility in South Carolina is turning out to be a lot more expensive than originally anticipated. According to “Handelsblatt”, the investment for the plant’s parent company, the pickup‑maker Scout, has risen from the earlier estimate of $2 billion to $3 billion-an increase of one full billion dollars.
A company spokesperson confirmed the revised figure and explained that Scout had set out from the beginning to build a “world‑class production site”. “Our investments have grown with the realization of this vision” she said. The earlier $2 billion total was described as only a “guaranteed minimum investment” in the agreement with the state.
The spokesperson cited a major driver for the higher cost: an expansion of the plant grounds to include a $300 million local supplier park. The park is intended to boost efficiency and create local jobs. Scout had announced the construction of the supplier complex in September, and construction has proceeded on schedule. “Today our Scout production centre is standing, and our main buildings can withstand the weather” the spokeswoman added.
Local economic developers from the Columbia Area Development Partnership (CADP) also confirmed the updated $3 billion total. CADP president Jeff Ruble told the newspaper that Scout had shared the revised number last week. He noted the plant’s expansion would have a huge impact on local tax revenue: “Scout’s massive investments and the new jobs created by this historic plant will transform our region”.
