VW expands Tennessee factory to build EVs in 2022
The all-electric crossover will require a 564,000-square-foot expansion to the body shop and a 198,000-square-foot battery assembly plant.
Volkswagen has kicked off a construction project at its Chattanooga, Tennessee, factory in preparation for the company's first electric vehicle for American buyers.
The production version of the ID Crozz, rumored to be labeled the ID.4, will begin rolling off the assembly line alongside the factory's internal-combustion models sometime in 2022. The Chattanooga plant will serve as VW's North American assembly base for electric vehicles going forward.
The expansion includes a 564,000-square-foot addition to the existing body shop, along with a new 198,000-square-foot building that will house battery assembly operations. The project will require $800 million and an additional 1,000 workers, with hiring to begin early next year and continue through production ramp-up in 2022.
VW says the all-electric crossover will enter production first at the company's Zwickau, Germany, assembly site. It is unclear if US customers will have to wait until 2022, or if the automaker plans to import the EV from Europe until the Tennessee plant begins building the vehicles.