Now comes more EV capacity – VW starts US ID.4 build

Volkswagen of America (VWoA) has begun production of its ID.4 electric compact SUV in Chattanooga, Tennessee.

The ID.4 replaces the Passat and is VW’s first electric vehicle assembled in the US.

The ID.4 is now VW Group’s most popular EV with 190,000 delivered worldwide since its launch in 2021.

The automaker is targeting 7,000 vehicles per month from Chattanooga “later this year, with the goal of further increasing production through 2023”. The first deliveries to customers in the US will take place in October.

Initially, the US-assembled ID.4 will be offered with an 82 kWh rear-wheel or four-wheel drive battery. A rear-wheel drive version with 62 kWh battery will enter production later in 2022, with a lower retail price.

The start of production is the result of a $800 million investment in electrification in Chattanooga, including dedicated facilities for vehicle and battery assembly. The Tennessee plant is now the sixth location to manufacture VW electric vehicles.

US Assembled ID.4s will be built with parts sourced primarily in North America, especially the US. The vehicle contains materials and components assembled in 11 states: steel from Alabama and Ohio, interior parts from Indiana and South Carolina, and electronic components from Kentucky and North Carolina.

The EV battery is provided by SK Innovation in Georgia.

Suppliers across the North American continent have invested $2.7 billion to make parts for the ID.4, including SK Innovation. 3,000 supplier jobs have been created in the US.

Chattanooga employs 4,000 people and is actively hiring another 1,000 by 2022 to help meet the high demand for the ID.4 and Atlas SUVs. To prepare for the construction of electric vehicles, the plant provided 75,000 hours of staff training on battery-powered vehicles and high-voltage systems.

VW has committed $7.1 billion in North America over the next five years to increase its product portfolio, regional R&D and manufacturing. New EVs expected in 2030 after the ID.4 include a fastback sedan and the ID. Buzz microbus in 2024 and new electric SUVs from 2026.

The automaker aims to have 55% of U.S. sales be all-electric by 2030.

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