Volkswagen has announced that it will be increasing the size of its Chattanooga plant in the US state of Tennessee to accommodate the production of all-electric vehicles.
The plant will be one of eight around the world to be home to building vehicles based on the MEB all-electric platform with the German brand aiming to produce more than a million electric cars every year by 2025.
The German group is investing £622.5m ($800m) into the new site, with Volkswagen claiming up to 1,000 jobs will be created by this plant.
It is predicted that the first MEB-based vehicles will roll off the production line in 2022, with factories in Europe, North America and China to be used for this electric vehicle offensive.
Volkswagen AG chief executive officer Dr Herbert Diess said: “The US is one of the most important locations for us and producing electric cars in Chattanooga is a key part of our growth strategy in North America.
See Available Volkswagen deals"The management team lead by Scott Keogh is committed to continuing to increase our market share in the coming years. Together with our ongoing investments and this increase in local production, we are strengthening the foundation for sustainable growth of the Volkswagen brand in the US."
Scott Keogh, Volkswagen Group of America chief executive officer and president, said: “We could not be prouder to build the future of mobility here in the U.S. We’re known as ‘the people’s car’ for a reason, and our EVs will build on that tradition.”
The Chattanooga plant is currently home to production of the Passat and US-exclusive Atlas SUV.