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Volkswagen Announces Tennessee Will Be Home for Its Electric Cars

Volkswagen recently announced Chattanooga, Tennessee will be its North American base for manufacturing electric vehicles (EVs). The expansion of its North American footprint will include an $800 million investment and produce 1,000 new jobs.

With the first EV expected to roll off the Chattanooga line in 2022, VW will begin building its first EV ever near the end of this year at its plant in Zwickau, Germany. Its new MEB, or modular electric toolkit chassis, will serve as the platform for these early electric vehicles.

The Chattanooga investment is part of the $50 billion Volkswagen has earmarked to spend on EVs and digital services worldwide before 2024. As a direct result of this investment, VW executives predict worldwide EV sales of 150,000 units by 2020 and 1 million units by 2025.

Currently Volkswagen builds its midsize Atlas SUV and Passat sedan at the Chattanooga facility, and will add a 5-seat Atlas Cross Sport to the plant’s production schedule before the end of 2019. VW has been marketing vehicles in the U.S. since 1955.

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