(The Center Square) – Michigan will give a nearly 2-year-old company a $10 million Michigan Business Development Program performance-based grant to support a facility for Scout Motors expected to employ 200 people.
Scout Motors, a Volkswagen-backed, independent American auto manufacturer headquartered in Virginia, is establishing a new research and development facility in Novi with support from the Michigan Strategic Fund.
“We’re thrilled to welcome Scout Motors’ new R&D facility to Michigan, creating 200 good-paying engineering jobs right here in Michigan. Winning this investment proves that Michigan offers the best opportunity for automotive companies – from R&D to manufacturing,” Gov. Gretchen Whitmer said in a statement. “I was honored to represent Team Michigan on my international trade mission at the beginning of the year, helping close this deal and secure this cutting-edge facility in Michigan as we round out 2023.”
Scout Motors Inc. was formed in 2022 to design and manufacture all-electric trucks and rugged SUVs. The company plans to revitalize the brand and is expected to begin vehicle production at the end of 2026.
“Our new vehicles will honor Scout’s hard-working heritage while injecting fresh American ingenuity to create a new era of iconic all-purpose vehicles,” President and CEO of Scout Motors Scott Keogh said in a statement. “As we design and engineer our vehicles, Michigan is the perfect place to establish our Innovation Center due to its deep automotive roots, continued investment in innovation and ability to attract and train a talented, diverse workforce.”
Michigan Economic Development Corp. CEO Quentin Messer, Jr. said the state is “thrilled” to welcome the company.
“This project represents the kind of R&D investment we continue to put Michigan in a position to win through a Make It in Michigan strategy,” Messer, Jr. said in a statement.
Michigan has fallen more than 1.9 million EVs short of reaching its climate goal of 2 million EVs driving on Michigan roads by 2030. To reach its EV goal, Michigan must register 23,400 EVs every month for seven years.
For context, Michigan has 34,380 EVs registered because of a high upfront cost and range anxiety from sparse charging networks.
Kelley Blue Book says the average price of an EV in September 2022 was $65,291. Meanwhile, the average price for a gas-powered vehicle was $48,100, and many used gas-powered cars cost between $5,000 and $15,000.
Oakland County is providing a $150,000 grant to support the project.
U.S. Rep. Debbie Dingell welcomed the plans.
“Southeast Michigan is leading the future of the auto industry, and we must continue to work to keep our state at the forefront of innovation, especially in the research and development of next-generation clean energy technologies,” Dingell said in a statement. “This investment in Novi by Scout Motors and the Michigan Strategic Fund will do just that, creating 200 good-paying jobs for Michiganders and further strengthening our region’s position as a national and global mobility leader.”
