Volkswagen Expanding into the Future
Photo Source: Volkswagen
A recent report out of Volkswagen’s home base in Germany indicates the company has been flirting with the idea of opening a second production company within the United States. The talks are that the company is looking at Chattanooga, Tennessee to add the facility, which is where the current footprint is. Not only is Volkswagen planning to expand its capacity within the United States, but they are also reportedly considering establishing a battery cell plant in the near vicinity.
Expanding into the Future
The US production of Volkswagen’s facility was originally announced back in 2008 and the market saw the first of its vehicles rolling out in 2011. Since then, Tennessee has rapidly become the mecca for the electrification of vehicles in the United States. The United States plant is the home base for the production of the ID.4 (Volkswagen’s EV), and they recently saw an $800 million expansion to support the assembly. This also means that the U.S plant could soon become the home base for the ID. Buzz’s production as well, if the German Automaker is able to “adjust accordingly”, as the Volkswagen Group of America’s Chief Executive Scott Keogh stated recently.
Spikes in Expansion for U.S Production
According to some unnamed stakeholders, Volkswagen’s plans for expansion within the United States will include expanding its production capacity to 600,000 vehicles annually. Currently, the production for the ID.4’s in Chattanooga is expected to be anywhere from 100,000 to 120,000 units per year, combining these units with the already existing production on the Atlas and the Atlas Cross Sport would be maxing out the Chattanooga plant.
As Volkswagen shows no signs of slowing down the process of electrification, the report also states that the company is also considering adding a battery plant near the Chattanooga plant as well. Though a final decision has not been reached on the potential United States expansion, the CEO of Volkswagen Diess is committed to going on the offensive to allow for this to be possible. With Volkswagen wanting to dip its toes into the production of an electric pickup truck, more space is definitely necessary for these vehicles to hit the market and keep up with Volkswagen’s promise of electrification.
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