Volkswagen Group of America recently said it would be investing $800 million to expand its Chattanooga, Tenn., factory.
The plant will create approximately 1,000 jobs and will build all-electric vehicles using Volkswagen’s MEB chassis.
The MEB chassis uses a common set of components and is flexible so it can underpin a range of vehicles from compact cars to vans.
The plant, which opened in 2011, currently assembles Atlas SUVs and Passat sedans. Next year, it also will assemble a five-seat version of the Atlas.
“Today’s announcement by Volkswagen that it has selected Chattanooga as its first North American manufacturing facility for electric vehicle production will create 1,000 new, good-paying jobs for Tennesseans and is yet another success story for our state’s auto industry,” U.S. Sen. Lamar Alexander (R-Tenn.) said. “Tennessee’s workforce, central location, our right-to-work law, our top-notch roads, and our state leadership have all contributed to Tennessee’s ability to create and expand good paying automotive jobs. Congratulations to Governor Haslam on this exciting announcement for our state.”
The electric vehicles are expected to go on sale next year.
Globally, Volkswagen will invest nearly $50 billion in electric vehicles and digital services through 2023. The goal is to sell 150,000 electric vehicles worldwide by next year.