Detroit — Volkswagen Group is adding a second Chattanooga assembly plant in Tennessee to build electric vehicles for Volkswagen and potentially other brands, with an $800 million investment expected to create 1,000 jobs at the German automaker's only U.S. assembly operation.
VW said Monday the new factory, which will be built next to the existing plant producing internal combustion vehicles, will begin producing EVs for North America in 2022. The EVs will be built on VW's modular electric toolkit chassis, known as MEB.
When production begins, the Chattanooga site will be one of six VW Group assembly plants globally dedicated to producing battery-electric vehicles, and the only one in North America. The 3.4 million-square-foot Chattanooga plant employs about 3,500 workers.
"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," VW Group CEO Herbert Diess said in a statement. "The management team, led by Scott Keogh, is committed to continuing to increase our market share in the coming years. Together with our ongoing investments and this increase in local production, we are strengthening the foundation for sustainable growth of the Volkswagen brand in the U.S."