Volkswagen have announced that construction for its electric vehicle production facility in Chattanooga, US has begun. The $800 million investment will create 1,000 new jobs, with production of their electric-only Volkswagen ID range, starting in 2022 with their first model of the ID. family an SUV. The North American assembly base will produce EVs on the Modular Electric Drive Matrix (MEB).
“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. “
Volkswagen began long-range EV production of ID.3 earlier this month in Zwickau, Germany, and will then roll out assembly worldwide, including in Anting and Foshan, in China, in 2020. By 2022, 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.
The expansion of the plant includes a 564,000-square-foot addition to the body shop.
The company also announced it intends to build a plant for the assembly of battery packs for EVs at the Chattanooga site.
Volkswagen currently builds the midsize Atlas SUV and the Passat sedan at the Chattanooga factory.