Volkswagen to Invest $7 Billion in North America
HERNDON, VA— Volkswagen AG plans to invest $7.1 billion over the next five years in North America to boost its EV product portfolio, regional R&D and manufacturing capabilities. By focusing on local engineering talent, battery know-how and software development, VW aims to have 55 percent of its U.S. sales be fully-electric by 2030. The automaker plans to offer 25 new EVs to domestic consumers through 2030.
“American ingenuity and manufacturing know-how are at the heart of our strategy for growth, and thousands of men and women are working hard every day throughout North America to bring the Volkswagen brand to life for consumers,” says Scott Keogh, president and CEO of Volkswagen Group of America Inc. “This profound commitment to our localized capabilities will transform Volkswagen into one of the leading EV brands known for its commitment to innovation, quality and the communities we call home.”
Assembly of the ID.4 SUV will begin later this year at the company’s large manufacturing complex in Chattanooga, TN, sourced mostly from regional suppliers. Volkswagen also plans to upgrade its factories in Puebla and Silao, Mexico, for the assembly of EVs and components, such as traction motors, by the middle of the decade.
As part of its preparation to launch the American-assembled ID.4, VW has invested more than $2.7 billion in supplier partnerships throughout the North American continent, including its battery partnership with SK Innovation. In addition, the company plans to establish a battery cell production operation in the U.S. to meet growing demand.
According to Keogh, VW is also expanding its battery know-how in the United States. In May, its new Battery Engineering Lab in Chattanooga will start operations. As result of a $22 million investment, the BEL will enable the company to test and validate batteries for all of its electric models in the American marketplace.
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