Tennessee is Likely Locale for Volkswagen's New EV Factory

Matt Posky
by Matt Posky

Last month, Volkswagen global brand head Herbert Diess said that Chattanooga would be the likely location for the company’s new electric vehicle plant. But he was also careful to specify that VW had made “no formal decision” on the matter.

While it’s always best to wait for the press release to say anything definitive, the automaker has begun posting openings for specialized positions that would relate to its upcoming MEB platform in Tennessee. Perviously, the automaker had only said it intended to build MEB vehicles at its plant in Zwickau, Germany, beginning with the I.D. hatchback model in 2019. It also mentioned it was planning a facility in China while the American site was still under consideration.

Although, with electric vehicles still stuck in a niche market, it might not make sense for VW to establish a new worksite for them. That’s one reason Chattanooga is the likely candidate. Instead of setting up a new facility, the company could expand upon an existing one.

“Chattanooga is highly underutilized [in its current form],” Dave Sullivan, a senior analyst with AutoPacific, told Automotive News. “If VW’s plant can mimic Nissan’s Smyrna plant — building a sedan, crossover and an EV under the same roof — they will be well on their way towards increased capacity utilization.”

Presently, the 3.4-million-square-foot Tennessee plant assembles two models: the Atlas crossover and the Passat sedan. While the Atlas is expected to rake in additional sales as the global crossover craze continues, VW has witnessed Passat volume shrink in North America every year since 2013. Annual sales for the model now represent about half of their post-recession peak and don’t look like they’ll be bouncing back any time soon.

Chattanooga is also the only automobile manufacturing plant in the entire world to receive a top rating in the LEED green building certifications. Receiving a large amount of its electrical power from a nearby solar park and reusing rainwater for cooling and restrooms, the site would make a primo location for VW to continue its green initiative. Building energy-efficient cars at an energy-efficient factory sounds like just the ticket to help the world forget about that pesky diesel emissions scandal from 2015.

While the I.D. hatchback is the first electric model slated to go into production, North America may not see assembly of that particular vehicle. Instead, we’re banking on VW focusing upon larger models — like the Crozz and Microbus — within the United States.

[Image: Volkswagen Group]

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

More by Matt Posky

Comments
Join the conversation
2 of 5 comments
  • Stingray65 Stingray65 on Dec 11, 2017

    All the tax breaks that TN has given VW to build this plant mean that producing a profitable vehicle would normally result in a big loss of taxable revenue, but since EVs don't make a profit they don't lose any revenue. On the other hand, how much capacity will these EVs utilize - since they are such poor sellers and totally dependent on subsidies that might be phased out - maybe not too many green jobs in this announcement.

  • Loopy55 Loopy55 on Dec 11, 2017

    VW intends to make a profit on these cars. They have stated that the MEB platform will allow them to sell EV's at prices comparable to ICE cars without government subsidies.

  • Kwik_Shift Hyunkia'sis doing what they do best...subverting expectations of quality.
  • MaintenanceCosts People who don't use the parking brake when they walk away from the car deserve to have the car roll into a river.
  • 3-On-The-Tree I’m sure they are good vehicles but you can’t base that on who is buying them. Land Rovers, Bentley’ are bought by Robin Leaches’s “The Rich and Famous” but they have terrible reliability.
  • SCE to AUX The fix sounds like a bandaid. Kia's not going to address the defective shaft assemblies because it's hard and expensive - not cool.
  • Analoggrotto I am sick and tired of every little Hyundai Kia Genesis flaw being blown out of proportion. Why doesn't TTAC talk about the Tundra iForce Max problems, Toyota V35A engine problems or the Lexus 500H Hybrid problems? Here's why: education. Most of America is illiterate, as are the people who bash Hyundai Kia Genesis. Surveys conducted by credible sources have observed a high concentration of Hyundai Kia Genesis models at elite ivy league universities, you know those places where students earn degrees which earn more than $100K per year? Get with the program TTAC.
Next