Chattanooga lands Volkswagen’s electric vehicle production for North America

January 14, 2019

Collins Parker,

DETROIT, Michigan (WDEF) – Volkswagen has more good news for Chattanooga.

The company announced today they will make electric vehicles at their plant in Tennessee.

That means a $800 million investment in the Chattanooga plant and a thousand new jobs.

The Scenic City plant will be the North American hub for Volkswagen’s all-electric vehicles built through the MEB tookit.

VW now has five prototypes built on the MEB chassis, from compact cars to the I.D. Buzz van.

“We could not be prouder to build the future of mobility here in the United States,” said Scott Keogh, CEO and president of Volkswagen Group of America. “We’re known as ‘the people’s car’ for a reason, and we plan to build EVs for millions, not millionaires.”

Right now, the plant has about 3,500 workers, and is already planning an expansion to make a 5 seat version of the Atlas next year.

The company has set a goal to sell 150,000 EVs worldwide next year.

They are building their first dedicated EV production facility in Zwickau, Germany.

They plan to begin building their first electric vehicles there by the end of the year.

And VW will also add EV production to a couple of Chinese facilities.

But the North American market belongs to Chattanooga.

“The shift toward electric vehicles is a trend that can be seen worldwide, and Volkswagen’s decision to locate its first North American EV manufacturing facility in Chattanooga underscores Tennessee’s manufacturing strength and highly-skilled workforce,” Governor Haslam said.

“The U.S. is one of the most important locations for us, and producing electric cars in Chattanooga is a key part of our growth strategy in North America,” said Dr. Herbert Diess, CEO of Volkswagen AG.

“This is another exciting day for Volkswagen and Hamilton County,” Hamilton County Mayor Jim Coppinger said. “Volkswagen has again proven to be a tremendous economic partner with this $800 million expansion that will create another 1,000 jobs for Hamilton County.“

“Volkswagen’s latest investment in Chattanooga is great news for our city. The 1,000 jobs this line will create means wages are growing and our city is stronger,” Chattanooga Mayor Andy Berke said. “For more than a decade, Volkswagen has proven time and again that when they invest in Chattanooga, their company and our community succeed together.”