Volkswagen Breaks Ground on EV Plant

Volkswagen of America will begin producing electrified vehicles in 2022 at a Tennessee plant that will be expanded with an $800 million investment, the automaker has announced.

The company will build its ID4 battery-electric SUV at the Chattanooga facility as the first EV it will sell in North America. The vehicle is based in the ID Crozz concept.

Earlier this month, Volkswagen began long-range EV production in Zwickau, Germany. In 2020, it wil begin building EVs in Anting and Foshan in China. By 2022, production will begin in Emden and Hanover in Germany. The Tennessee site will be the company's hub for North American EV production.

Volkswagen is expanding an existing plant to add a 564,000 square foot body shop. The company will also build a 198,000-square-foot site to assemble battery packs for the EVs.

Volkswagen now builds the Atlas and Passat at the plant. The five-seat Atlas Cross Sport will begin production this year and go on sale in 2020.