VW mulls expanding U.S. plant to build ID.Buzz, electric pickup - source (updated)
28/04/2022 09:57
(Adds detail, background)
BERLIN, April 28 (Reuters) - Volkswagen VOWG_p.DE is
considering an expansion of its Chattanooga plant in the United
States to produce an electric pick-up and the new ID.Buzz
microbus, a source close to the matter told Reuters on Thursday.
The move would help the German automaker grow its market
share in North America, which it identified in March as the
region with the greatest growth potential but which was
unprofitable for several years before 2021.
Volkswagen said in March it was shifting production to China
and the United States as a result of the war in
Ukraine. urn:newsml:reuters.com:*:nL5N2VI281
The carmaker plans to invest at least $7.1 billion over the
next five years in North America and add 25 new electric
vehicles there by 2030, with the aim of 50% of sales to be
electric by then. urn:newsml:reuters.com:*:nL2N2VO1G6
The Chattanooga plant, its only U.S. plant so far, which
produces models including the Passat and Atlas, begun pilot
production of the ID.4 electric crossover in March in
preparation for a fall launch.
A top executive said in March that the ID.Buzz would
initially be imported from Volkswagen's Hanover plant but that
it could be ultimately assembled in the United States or Mexico.
Earlier on Thursday, Manager Magazin reported that the
German carmaker was planning to build a second production plant
in the United States, increasing its production capacity there
to up to 600,000 vehicles per year.
Citing stakeholders, the magazine said the new plant could
be built next to the current Chattanooga factory and that the
carmaker is also considering construction of a battery cell
plant.
Volkswagen declined to comment.
(Reporting by Jan Schwartz; Writing by Riham Alkousaa, Victoria
Waldersee; Editing by Paul Carrel; Editing by Maria Sheahan)
((Riham.Alkousaa@thomsonreuters.com;))