Volkswagen AG announced that Chattanooga, Tenn. will be the company’s North American base for manufacturing electric vehicles based on the modular electric toolkit MEB. This expansion of Volkswagen’s US footprint will include an investment of $800 million into the Chattanooga facility and create 1,000 jobs at the plant, plus additional jobs at suppliers. EV production at the site will begin in 2022.
Volkswagen is establishing a worldwide production network for electric cars and intends to have eight MEB plants on three continents by 2022. In addition to Chattanooga, Volkswagen is building the first dedicated EV production facility in Zwickau, Germany, starting MEB production by the end of 2019.
Volkswagen will also add EV-production at facilities in Anting and Foshan, in China, in 2020, and in the German cities of Emden and Hanover by 2022. Volkswagen is building up the production capacity needed to sell more than 1 million electric cars per year by 2025.
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. This vehicle will have the interior space of a midsize SUV in the footprint of a compact SUV. Volkswagen of America will also offer a multi-purpose EV based off the ID. BUZZ concept—the reinterpretation of the legendary VW bus.
We could not be prouder to build the future of mobility here in the US. We’re known as ‘the people’s car’ for a reason, and our EVs will build on that tradition.—Scott Keogh, CEO and president of Volkswagen Group of America
Globally, Volkswagen Group plans to commit almost $50 billion through 2023 toward the development and production of electric vehicles and digital services. The Volkswagen brand alone has forecasted selling 150,000 EVs by 2020 worldwide, increasing that number to 1 million by 2025.
In 2017, the Volkswagen brand delivered some 50,000 pure electric cars and plug-in hybrids to customers—up 13% compared with the previous year.
The Chattanooga plant will continue to produce the Atlas and the Passat.
Over the next few years, the Volkswagen brand will be launching more than 20 full electric models. All in all, the Volkswagen brand is investing a total of €11 billion in future-oriented technologies by 2023, including €9 billion in e-mobility.