Volkswagen breaks ground on new US electric vehicle production facility

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As part of Volkswagen’s investment into the production of electric vehicles in the United States, construction of a new US$800m facility has begun in Chattanooga.

The site, which is scheduled to begin producing its first EVs in 2022 will be Volkswagen’s North American assembly base for electric vehicles on the Modular Electric Drive Matrix (MEB), which is being rolled out on the company’s latest ID.3 vehicle and rest of its upcoming electric range.

In addition to the main facility, will is said to create an estimated 1000 jobs, VW will also build a 546,000ft2 separate plant on-site that will assemble battery packs.

The first vehicle due to roll out of the Chattanooga plant is expected to be a SUV of the ID. family. 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.

“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 of people.”

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