Volkswagen to make electric vehicles at plant in Tennessee

NASHVILLE, Tenn. (CLARKSVILLENOW) – Volkswagen AG announced today that Chattanooga will be home to the company’s first electric vehicle manufacturing facility in North America.

The project represents an investment of $800 million by Volkswagen and the creation of 1,000 jobs in Hamilton County.

Chattanooga will be the first manufacturing facility in North America that will produce vehicles using Volkswagen’s modular electric toolkit chassis, or MEB. The first Volkswagen electric vehicle will roll out in 2022.

“The shift toward electric vehicles is a trend that can be seen worldwide, and Volkswagen’s decision to locate its first North American EV manufacturing facility in Chattanooga underscores Tennessee’s manufacturing strength and highly-skilled workforce,” TN Governor Bill Haslam said in a release. “As one of Hamilton County’s top employers, these additional 1,000 jobs will have a lasting impact on the region. I thank Volkswagen for its partnership and also applaud the company for its ongoing commitment to education and workforce alignment, which helps Tennessee build a pipeline of talent for years to come.”

Volkswagen’s Chattanooga facility is more than 3 million square feet and situated on 1,400 acres. In 2011, the Chattanooga plant became the first and only automobile manufacturing facility in the world to be certified LEED Platinum. The Volkswagen midsize Atlas SUV and Passat sedan are currently built in Chattanooga. More than 100,000 Atlas SUVs and 700,000 Passats have been manufactured at the plant.

“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,” said Dr. Herbert Diess, CEO of Volkswagen AG. “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.”

Tennessee ranks No. 1 in the nation for automobile manufacturing employment concentration. The state is also home to three major automotive assembly plants and more than 900 suppliers that operate in 88 of the state’s 95 counties.