VW factory expansion for EVs

Volkswagen AG confirms its EVs will be made in Chattanooga, Tennessee, as part of its North American growth strategy.

It will include a US$800 million investment in its Chattanooga facility with EV production at the site due to begin in 2022.

Chattanooga will be the first dedicated location in North America for production of a vehicle using Volkswagen’s modular electric toolkit chassis, or MEB.

In addition, Volkswagen is building the first dedicated EV production facility in Zwickau, Germany, starting MEB production there by the end of 2019.

Volkswagen will also add EV production at facilities in Anting and Foshan, China, in 2020, and in the German cities of Emden and Hanover by 2022.

“The US is one of the most important locations for us and producing electric cars in Chattanooga is a key part of our growth strategy in North America,” Volkswagen AG chief executive officer Dr Herbert Diess says. “The management team, led by Scott Keogh, is committed to continuing to increase our market share in the coming years. Together with our ongoing investments and this increase in local production, we are strengthening the foundation for sustainable growth of the Volkswagen brand in the US.”

Volkswagen of America will offer the first EV based on the MEB platform to customers in 2020. This vehicle will be a series-production version of the ID. Crozz SUV concept, first shown at the North American International Auto Show last year. Volkswagen of America will also offer a multi-purpose EV based off the ID. Buzz concept.

Volkswagen currently builds the midsize Atlas SUV and the Passat sedan at the Chattanooga factory, which opened in 2011. A five-seat Atlas Cross Sport will begin production in Chattanooga later this year.

Globally, Volkswagen Group plans to commit almost US$50 billion through 2023 toward the development and production of EVs and digital services. The Volkswagen brand alone has forecasted selling 150,000 EVs by 2020 worldwide, increasing that number to a million by 2025.