VW Plans $800 Million EV Factory in Tennessee

January 14, 2019 at 11:37 AM

Volkswagen AG is building a second assembly plant adjoining its facility in Chattanooga, Tenn., to make electric vehicles beginning in 2020.

The $800 million factory will create 1,000 jobs, according to the company. The models it make will ride on VW’s new MEB chassis, which is designed specifically for electrics. The carmaker did not specify what model the new factory will make first or what the facility’s capacity will be.

VW plans to introduce its I.D. Crozz crossover vehicle (pictured) to the American market in 2020. A modern version of the company’s iconic Microbus, inspired by VW’s I.D. Buzz concept, is due in 2022.

VW Group reiterates that it expects to roll out 27 all-electric models by 2022 under a €44 billion ($50 billion) vehicle electrification push through 2023. The VW brand along aims for annual global EV sales of 150,000 units by 2020 and 1 million by 2025.