Volkswagen of America has marked the start of construction for its electric vehicle production facility.

The Chattanooga site, where production begins in 2022, will be Volkswagen’s North American assembly base for electric vehicles on the Modular Electric Drive Matrix (MEB). The company also announced it intends to build a plant for the assembly of battery packs for EVs at the Chattanooga site.

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.

Find out more

“This is a big, big moment for this company,” said Scott Keogh, president and CEO of Volkswagen Group of America. “Expanding local production sets the foundation for our sustainable growth in the U.S. Electric vehicles are the future of mobility and Volkswagen will build them for millions of people. “

Volkswagen began long-range EV production of ID.3 earlier this month in Zwickau, Germany, and will then roll out assembly worldwide, including in Anting and Foshan, in China, in 2020. By 2022, MEB vehicles are to be produced at eight locations on three continents. The Chattanooga site will be VW’s North-American hub for EV manufacturing.

Volkswagen’s investment of about $800 million in the Chattanooga facility will require the addition of about 1,000 jobs. Production is set to begin in Chattanooga in 2022. First model will be a SUV of ID. family.

The expansion of the plant includes a 564,000-square-foot addition to the body shop.

The company also announced it intends to build a plant for the assembly of battery packs for EVs at the Chattanooga site.

Volkswagen currently builds the midsize Atlas SUV and the Passat sedan at the Chattanooga factory.

Just Auto Excellence Awards - Nominations Closed

Nominations are now closed for the Just Auto Technology Excellence Awards. A big thanks to all the organisations that entered – your response has been outstanding, showcasing exceptional innovation, leadership, and impact.

Excellence in Action
Continental has secured the Window Displays Innovation Award in the 2025 Just Auto Excellence Awards for its Window Projection solution, transforming side windows into dynamic, data-rich canvases. Discover how this compact projection technology and intelligent software are reshaping in-car UX and opening fresh revenue streams for OEMs and mobility providers.

Discover the Impact