VW mulls expanding U.S. plant to build ID.Buzz, electric pickup
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© Reuters. FILE PHOTO – The Volkswagen Chattanooga Assembly Plant, Chattanooga (Tennessee), November 4, 2015. REUTERS/Tami ChappellBERLIN, (Reuters) –Volkswagen might expand the Chattanooga factory in the United States to create an electric pick up and a new ID. According to Reuters sources on Thursday.
This would allow the German automaker to increase its North American market share. It identified North America in March as having the highest growth potential, but it was not profitable for many years.
Volkswagen (ETR;) announced in March that the war in Ukraine had caused it to shift its production to China, and then the United States.
In North America, the car manufacturer plans to invest $7.1 billion in the next five year and build 25 more electric vehicles by 2030. This will allow for a minimum of half of the company’s sales to go electric.
Chattanooga is the US’s only plant to produce models such as the Passat or Atlas. In preparation of a fall launch, pilot production began in March at the ID.4 crossover.
In March, a top executive stated that while the ID.Buzz will initially be imported from Volkswagen’s Hanover plant, it can eventually be assembled in America or Mexico.
Manager Magazin had reported earlier on Thursday that the German automaker planned to construct a second plant in America, increasing its annual production to 600,000.
According to stakeholders, the magazine stated that the new plant could be constructed next to Chattanooga’s existing factory. It also mentioned that the automaker was considering building a battery plant.
Volkswagen declined to comment.
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