Volkswagen desires to construct new EV amenities within the US, govt says


Scott Keogh, VW, in San Francisco, California, September 18, 2018.

David Paul Morris | Bloomberg | Getty Photographs

CHATTANOGA, Tenn. – Volkswagen is “actively” seeking to set up new meeting and battery amenities within the US, Volkswagen of America CEO Scott Keogh informed CNBC on Wednesday.

Keogh declined to debate attainable places for such operations. The German automaker’s electrification efforts are at present based mostly in Tennessee, together with native manufacturing of the VW ID.4 crossover EV, set to start later this yr.

“We’re actively within the strategy of one other manufacturing facility and in addition a battery facility,” Keogh stated in an interview.

An organization spokesperson stated Volkswagen remains to be discussing and evaluating its choices, and no choice has been made.

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Such amenities, whether or not new or expanded, could be a major choice and imply doubtlessly billions of {dollars} in new US funding for VW, which at present has North American meeting vegetation in Tennessee and Mexico.

Any funding would comply with comparable strikes by different corporations to extend EV manufacturing within the US – a key purpose of the Biden administration.

The opportunity of new VW electrical car options within the US was beforehand reported by European media.

Keogh’s feedback adopted the grand opening of the German automaker’s new $22 million electrical car battery lab, positioned close to its solely US meeting plant in Chattanooga. That is a part of a $7.1 billion dedication to spice up its EV efforts in North America.

The brand new 32,000-square-foot Battery Lab will take a look at and optimize batteries for electrical automobiles for the US market. It’s one in all 4 such options that VW has introduced globally.

ID.4 Manufacturing Ramp

A VW EV ID.4 cross-over on the VW plant in Chattanooga, TN on June 8, 2022.

Michael Welland | CNBC

Keogh stated Volkswagen expects a major enhance in its US availability and gross sales of electrical automobiles through the second half of this yr, because it prepares to extend US manufacturing of its ID4 crossover.

Volkswagen has been importing the ID.4 from Germany in restricted portions since final yr, between 800 and a pair of,000 automobiles per 30 days. Keogh stated native manufacturing at its Chattanooga plant is predicted to quickly enhance to about 7,000 ID.4 fashions by the top of this yr.

“We do not wish to launch with 100 automobiles. We wish to launch with a couple of thousand automobiles,” he stated. “it’s too huge.”

Pre-production fashions of the car for use for testing, validation and different functions are at present being assembled on the plant. Official manufacturing is predicted to start out early subsequent month. Keogh stated the automobiles are anticipated to circulation to dealerships in early September with important availability.

Such a manufacturing ramp-up could be a lot faster than lots of the new EVs coming to market, together with start-ups like Rivian, in addition to different conventional automakers like Basic Motors.

VW bought solely 2,755 fashions of the ID.4 through the first quarter of this yr. Final yr it bought 16,742 automobiles.

Keogh stated the Chattanooga plant is predicted to finally attain manufacturing capability of as much as 10,000 ID.4 EVs per 30 days when it’s totally operational and is operating with three shifts of staff – a primary for the plant.

Keogh stated present imports of about $41,000 EVs excluding any federal or state incentives usually are not sufficient to satisfy buyer demand. He stated the automobiles had been “utterly bought out.”


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