Volkswagen investing $800 million, adding 1,000 jobs at Tennessee plant

Chris Teague

Chris Teague

Volkswagen is spending $800 million to expand its Chattanooga, Tennessee plant as the company readies for large-scale battery-powered electric vehicle (BEV) production. The plan calls for the addition of 1,000 jobs and 564,000 square feet of space.

“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, not just millionaires.”

The Chattanooga plant will be Volkwagen’s U.S. base for BEV production.

The company rolled out long-range EV production earlier this month at its Zwickau, Germany plant. The production version of the ID CROZZ will initially be assembled in Germany but production will move to Chattanooga in 2022 when the expansion opens.

That doesn’t meant that the entire plant is converting to BEV production. Volkswagen will continue to built both internal combustion engine vehicles as well as BEVs on the same assembly line.

VW currently builds its midsize Atlas SUV and Passat sedan in Chattanooga. The forthcoming Atlas Cross Sport, sporting the redesigned “R” logo, will also be assembled there.

Previously, Volkswagen has announced plans to build a 198,000-square-foot battery pack assembly plant at the Chattanooga site.

“With Volkswagen’s expansion, Tennessee is on the cutting edge of the move to electric vehicles and our workforce is up to the challenge.” Tennessee Gov. Lee said. “We look forward to a continued partnership with VW and the growth of advanced manufacturing in Chattanooga and beyond.”

Ambassador Haber added, “The United States plays an absolutely central role in German carmakers’ global activities. German carmakers like Volkswagen have already invested here, in Tennessee and in the U.S. as whole, creating jobs and training young employees. I wish Volkswagen of America and this new facility for electric vehicles all the best and a lot of success.”

Tom du Plessis, Volkswagen Chattanooga CEO, said the expansion signals the start of new, high-tech processes in the plant. Hiring for the new assembly will begin in early 2020 and will continue as production ramps up. Positions added for the expansion include supervisors, specialists and a variety of engineers specializing in electrical, software, mechanical, manufacturing, chemical and quality control.

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