Stock Groups

Volkswagen looks to build new EV facilities in the U.S., exec says


Scott Keogh (VW) in San Francisco, California on Sept. 18, 2018.

Bloomberg — Getty Images| Bloomberg | Getty Images

CHATTANOOGA, Tenn. – Volkswagen is “actively” looking to establish new assembly and battery facilities in the U.S., Volkswagen of America CEO Scott Keogh told CNBC on Wednesday.

Keogh did not discuss possible locations. The German automaker’s electrification efforts are currently based in Tennessee, including localized production of the VW ID.4 crossover EV — set to begin later this year.

Keogh stated in an interview that “We are actively looking at other production facilities and also looking into a battery facility.”

Volkswagen remains in the process of evaluating and discussing its options. However, no decision has been made.

These new and expanded facilities are a big decision for VW. It currently has North American assembly plant in Tennessee, Mexico.

Any investment would follow similar moves by other companies to increase EV production in the U.S. – a major goal of the Biden administration.

European media previously reported on the possibility of new VW electric car facilities in the United States.

Keogh made these remarks after the official opening of the $22 million battery laboratory for electric vehicles by the German automaker. It is located close to its only American assembly plant, Chattanooga. This is part of an $7.1 billion pledge to increase its EV efforts across North America.

New 32,000-square foot battery lab for optimizing batteries for electric vehicles will be tested and optimized for U.S. markets. The facility is the fourth such one that VW announced around the world.