Those cool EVs will be built by American workers.
Contrary to popular belief, a lot of foreign automakers actually build a majority of their vehicles in the United States. Volkswagen already builds the Passat sedan, Atlas crossover, and recently revealed Atlas Cross Sport at its US assembly plant in Chatanooga, Tennessee. And the German automaker is planning to build some even more important vehicles here in the future.
VW has already said it has two new SUVs coming in the next several years. The first will be a compact crossover built in Mexico but the second will a US-built electric SUV, rumored to be called the ID.4. The ID.4 won't be assembled in Tennessee for a few more years but VW just broke ground on the portion of the factory where it will be built.
This is a major step towards VW's electric future in the US. VW has begun building the ID.3 hatchback in Germany but that model won't be coming stateside. Instead, the ID.4 will be the first ID-branded product for the US, likely followed by the ID.Buzz and a production version ID.Space Vizzion. "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 US. Electric vehicles are the future of mobility and Volkswagen will build them for millions, not just millionaires."
VW's $800 million investment in the Chattanooga facility will create around 1,000 new jobs. It also includes a new 564,000-square-foot addition to the body shop where internal combustion engine cars and EVs will roll off of the same assembly line. The ID.4 will be imported from Europe for a model year or two but by 2022, it will be built in the US.
In addition to building electric cars in Tennessee, VW will also build a 198,000-square-foot plant for the assembly of battery packs. "With Volkswagen's expansion, Tennessee is on the cutting edge of the move to electric vehicles and our workforce is up to the challenge." Tennessee Governor Lee said. "We look forward to a continued partnership with VW and the growth of advanced manufacturing in Chattanooga and beyond."