Volkswagen plans to expand Chattanooga plant to make room for electric vehicle production

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According to an inside source, Volkswagen is currently exploring the possibility of expanding its plant in Chattanooga, Tennessee, to accommodate production of an electric pickup truck and the highly anticipated ID.Buzz microbus. The automaker had been steadily losing market share in North America before last year, but hopes to make a comeback as the push to electrify the auto industry continues.

Volkswagen has previously announced that the conflict in Ukraine is pushing the automaker to further shift its operations to the United States and China and said it plans to spend more than $7 billion in the United States over the next five years. . The company is also still aiming for 50% of North American sales to be electric by 2030.

This week, the German magazine Store Manager reported that Volkswagen is also planning to build an entirely separate new plant in the United States that could produce 600,000 vehicles a year. Stakeholders reportedly said the new plant could be built next to the existing one in Tennessee, and they indicated the company may eventually consider setting up a battery cell plant in the United States.

Currently, the Chattanooga manufacturing plant is Volkswagen’s only plant in the United States. It currently produces the ID.4 electric crossover and Atlas and Passat vehicles. Although the ID.Buzz microbus may eventually be built in the United States, it will initially be imported from a factory in Hannover, Germany.

The company declined to comment on the matter.


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