Volkswagen to Invest $800 in NEV Plant
2019-01-28 13:44 Monday
According to a recent announcement from Volkswagen, the German automaker will invest $800 million to upgrade electric vehicle manufacturing at its plant in Chattanooga, Tennessee. In order to compete with other automakers, Volkswagen is also pushing to add more battery-powered models to its vehicle lineup.
German automakers have been under pressure from U.S. President Donald Trump to increase their investment in the United States. Volkswagen claims that the new factory will be its main production center for electric vehicles in North America. According to the company's announcement, its expansion in Tennessee will create 1,000 new jobs ; production is expected to begin in 2022.
"We obviously think electric vehicles are going to play a more and more prominent role," said Tennessee Governor Bill Haslam.
"The US 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," Herbert Diess, Chief Executive of Volkswagen, said in a statement.
Volkswagen also noted that it is building electric-vehicle plants in Zwickau, Germany, and will add EV facilities in the German cities of Emden and Hanover by 2022, as well as in Anting and Foshan, China by 2020.
VW Group plans to invest almost $50 billion through 2023 toward the development and production of electric vehicles and digital services. The VW brand plans to sell 150,000 EVs by 2020 worldwide, with an increase to one million by 2025.
To alleviate the pressure of developing new electric vehicles and self-driving technology, Volkswagen and Ford are scheduling a conference call to discuss details about their alliance. The two companies previously said they would cooperate on commercial vehicles and seek other opportunities to work together.