© Volkswagen Electronics Production | January 15, 2019
VW Expanding Chattanooga Plant for North American EV Rollout
Forging ahead with its electric-car offensive, Volkswagen has announced that the company’s Chattanooga, Tennessee plant, which began operations in 2011, will produce vehicles based on their modular electric toolkit MEB, a new generation of electric cars, by 2022.
Volkswagen is investing about EUR 700 million (USD800 million) in the plant, and the expansion will create up to 1'000 new jobs, plus additional jobs at suppliers. “The U.S. 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,” said Dr. Herbert Diess, CEO of Volkswagen AG. "The management team lead 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." Over the next few years, plans to establish a worldwide production network include the development of eight more MEB plants in Europe, North America and China, to reach the company’s goal of selling upwards of 1 million electric cars, per year, throughout the world by 2025. The first EV to roll off the production line in Chattanooga will be the ID. CROZZ1 SUV model. Volkswagen plans to also offer the ID. BUZZ in North America, the reinterpretation of the legendary VW bus. Both cars are part of Volkswagen’s new ID. family, which optimizes the possibilities of e-mobility. Among other features, the vehicles will offer long ranges, a spacious interior, dynamic driving behavior and a new level of digital connectivity. “We could not be prouder to build the future of mobility here in the U.S.,” said Scott Keogh, CEO and president of Volkswagen Group of America. “We’re known as ‘the people’s car’ for a reason, and our EVs will build on that tradition.” The Chattanooga plant will continue to produce the mid-size Atlas SUV and the Passat sedan, and a five-seat version of the Atlas, the Atlas Cross Sport, will come off the line in Chattanooga later this year. Chattanooga is the only VW plant in the United States. Formerly, the company operated a plant in New Stanton, Pennsylvania, from 1978-88. Volkswagen has embarked on the largest electric-car offensive in the automotive industry. Over the next few years, the brand will be launching more than 20 full-electric models. The first of these will be the compact ID., with production starting at the Zwickau plant in Germany by the end of 2019. Further MEB plants are being developed in Emden, Hanover, Dresden and Mlada Boleslav in the Czech Republic. The Chinese market will be served by the Anting and Foshan plants. All in all, the Volkswagen brand will invest a total of EUR 11 billion in future-oriented technologies by 2023, including EUR 9 billion in e-mobility.