Volkswagen May Choose America Over Mexico To Build Three News EVs

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But it's not a done deal just yet.

Volkswagen has two massive production facilities in North America. One of them is in Chattanooga, Tennessee while the second and larger one is in Puebla, Mexico. Understandably, both want to be the chosen site for VW’s upcoming all-electric vehicles, starting with the I.D. hatchback, due to arrive next year. However, according to Automotive News Europe, it appears Chattanooga will likely be chosen as one of 16 locations globally to build VW’s new EVs. A total of 26 other new EV models will enter production by the end of 2022, and production will be scattered among those global production facilities. However, only one will be required in North America.

So, why Chattanooga over Puebla? “We think there is a natural fit to Chattanooga, but definitely there is no decision so far,” said Thomas Ulbrich, member of VW brand's executive board responsible for electric mobility. Furthermore, he Ulbrich seemed to downplay the idea that Puebla, despite being larger, will win out over Chattanooga. Ulbrich also acknowledged that other US locations has been briefly considered for EV production, but ultimately the decision has been made to stick with and, if necessary, expand an existing facility. Ulbrich then admitted a total of three EVs will be built in North America, including the I.D. hatchback.

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The second two, though still not confirmed, are likely to be the I.D. Crozz crossover and the I.D. Buzz retro-styled minivan. For now, nothing is 100 percent official, but given the current political climate, Chattanooga’s proven ability to meet high production goals, and the state of Tennessee’s willingness to help move things along to help with facility expansion, it appears to be a nearly done deal. Having up to three VW EVs produced in America for America will surely help when it comes to attracting customers, especially those who might be a bit hesitant to buy an electric car.

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