December 6, 2019

VW Breaks Ground on Expansion for EV Production in United States

VW Chattanooga plant
Rendering of VW's expanded Chattanooga plant

Volkswagen of America has marked the start of construction for its electric vehicle production facility in the United States. Production at the Chattanooga site, in the state of Tennessee, is set to begin in 2022, and the plant will be VW’s North American assembly base for electric vehicles on the company’s Modular Electric Drive Matrix (MEB). The company also announced it intends to build a plant for the assembly of battery packs for EVs at the site.

VW began production of the ID.3 electric car earlier this month in Zwickau, Germany, and will roll out assembly worldwide, including in Anting and Foshan, in China, in 2020. By 2022, the company says that MEB vehicles are to be produced at eight locations on three continents. The Chattanooga site will be VW’s North American hub for EV manufacturing.

VW’s investment of about $800 million ($AU1.17 billion) in the Chattanooga facility will include the addition of about 1,000 jobs. VW currently builds the mid-size Atlas SUV and the Passat sedan at the factory.

“This is a big, big moment for this company,” said Scott Keogh, president and CEO of Volkswagen Group of America. “Expanding local production sets the foundation for our sustainable growth in the U.S. Electric vehicles are the future of mobility and Volkswagen will build them for millions of people. “