Volkswagen to Invest $24 Billion in US Electric Vehicle Hub
Volkswagen is ramping up its electric vehicle (EV) ambitions in the United States with a massive $24 billion investment over the next decade. The German automaker announced plans to build a new EV assembly plant in Chattanooga, Tennessee, and expand production at its existing plant in Puebla, Mexico.
Chattanooga EV Plant
The new Chattanooga plant will be Volkswagen's first EV factory in North America. The facility is expected to start production in 2025 and will have an initial annual capacity of 250,000 vehicles. Volkswagen plans to invest $8 billion in the plant and create up to 5,000 new jobs.
Puebla Expansion
Volkswagen will also invest $16 billion to expand its Puebla plant, which currently produces the Jetta and Taos models. The expansion will include a new battery facility and additional production capacity for EVs. The Puebla plant is expected to start producing EVs in 2026.
North American EV Hub
The investments in Chattanooga and Puebla will make the United States Volkswagen's primary EV hub in North America. The company aims to have EVs account for 50% of its sales in the region by 2030.
Volkswagen's EV lineup in the United States will include the ID.4 and ID.buzz models, as well as future models. The EVs will be based on Volkswagen's MEB platform and will use Ultium batteries supplied by General Motors.
The investment in the US reflects Volkswagen's recognition of the growing demand for EVs in the region. The company is also facing increasing competition from other automakers, such as Tesla and Ford, which are also investing in EV production.
The transition to EVs is expected to have a significant environmental impact. EVs produce zero tailpipe emissions, which helps to reduce air pollution and greenhouse gas emissions. The expansion of EV manufacturing in the US will also create new jobs and support the clean energy economy.