(The Center Square) – Charlotte has been picked as the corporate headquarters of a reborn and iconic American sport utility vehicle manufacturer, with the help of millions in taxpayer funded grants.
Incentives from the state are about $51.3 million, from Mecklenburg County $12.8 million and from the city of Charlotte 7.3 million for Scout Motors Inc., the successor to International Scout, which was owned by International Harvester. The $206.9 million investment is projected to yield 1,200 jobs.
Scout Motors Inc. was relaunched in 2022 and is now owned by German automaker Volkswagen.
The International Scout was the first SUV and produced from 1961-80, according to the state.
The company is also building a manufacturing facility in South Carolina and an innovation center in Michigan.
The Charlotte jobs will pay a minimum average salary of $172,878, twice the average for Mecklenburg County, the state said.
Economists question the effectiveness of financial incentives to businesses to expand or come to a new state. Context is encouraged when wages are introduced because a few corporate leaders at a site can skew the average higher while the median wage would not have the same ratio.
The Economic Investment Committee on Wednesday approved job development investment grants of up to $46.5 million over 12 years. Other incentives could bring the total state and local aid package to more than $60 million.
Competitors for the headquarters were South Carolina and Northern Virginia. Charlotte was chosen in part because of an available work force, proximity to the company’s other sites, and community involvement and engagement.
“Scout Motors is revitalizing an iconic American brand, creating high-quality jobs, and building the next great automotive company right here in the Carolinas,” Gov. Josh Stein saId in a statement. “Our business-friendly climate, our top-tier research universities and community colleges, our leadership in the clean energy economy, our quality of life, and above all, our people make companies want to call North Carolina home.”
