Volkswagen has announced a $800 million investment in the company’s manufacturing of electric vehicles in North America at the Chattanooga plant, including facilities for vehicle and battery pack assembly.
The company has said that they are hiring more than 1,000 production team workers there through the end of the year. Volkswagen Chattanooga currently employs more than 4,000 people.
The Chattanooga factory is now the sixth site globally to produce electric vehicles for Volkswagen. Volkswagen’s goal is for 55% of U.S. sales to be fully electric by 2030.
The start of production comes as America’s automakers take aim with electric vehicles at the largest segment of the U.S. market: modest-sized SUVs, representing about 20% of new-vehicle sales.
Volkswagen says the ID.4 is its most popular electric vehicle, with more than 190,000 delivered to customers around the world since last year.
The company says customers can expect ID.4s to be delivered as early as October. The starting manufacturer’s suggested retail price is about $41,000.
Primarily Volkswagen will offer the American-built vehicles in either rear wheel drive or all wheel drive with 82-kilowatt-hour battery. A lower-priced version with a 62-kilowatt-hour-battery and rear-wheel drive will go into production later this year.
Volkswagen have said that they will rely on North American parts for the vehicle, including materials and components assembled in 11 U.S. states SK innovation in Georgia will supply the batteries.
In the budget passed by Tennessee lawmakers in 2019, Volkswagen received an additional $50 million in state incentives for the Chattanooga plant to aid in the electric vehicle expansion.