Volkswagen announced at the Detroit Auto Show that it will be investing $800 million in its factory in Chattanooga, Tennessee to build a new electric vehicle at the plant. Volkswagen Chief Executive Herbert Diess said: “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.”

The German automaker said electric vehicle production at the Tennessee plant would begin in 2022. The first EV to be produced will be an all-electric crossover based I.D. CROZZ Concept. After that, the automaker will start producing the I.D. BUZZ electric microbus. The automaker’s investment will create 1,000 new jobs at the Chattanooga factory.

The company claimed in November that it’s planning for the capacity to produce “15 million full-electric cars” and that it will have “much lower” prices than rival Tesla. Volkswagen isn’t the only company preparing for big changes in the automotive industry; and several other major automakers plan to speak about the future of the industry at this week’s Detroit Auto Show.

VW will build electric vehicles for the U.S. in Tennessee


Editorial credit: Helmut Seisenberger /