Thursday, January 26, 2023
News Volkswagen Planning Big Spends for North American EV Production

Volkswagen Planning Big Spends for North American EV Production

VW spending billions on EV production

  • $7.1b plan will add production, allow more regional models

  • North American phaseout of gas expected to start after 2030


Volkswagen of America is planning to spend big bucks to boost EV production capability in North America. That’s US $7.1B ($8.9B CAD) through 2027 as it works to regionalize EV production here as well as ensure it will have ICE product for North America during the transition to electric vehicles.

The plan, reported by Automotive News, calls for more than 25 new BEV models through 2030 across all of its U.S. brands including VW, Audi, Porsche, Bentley, and Lamborghini. What’s extra interesting for consumers is a plan to localise “all major design and engineering responsibilities.” That means, much like the Volkswagen Atlas and Tiguan, vehicles designed to meet the unique needs of the U.S. and Canada. It could allow some EV models that wouldn’t make sense for the rest of the world, but could here.

VWoA CEO Scott Keogh said that the automaker plans to begin phasing out ICE models here after the turn of the decade. Before that, the ID.4 will start production in Chattanooga, TN, while EV versions of the Atlas and Atlas Cross Sport are expected from 2026.

The investments will include a new battery plant as well as overhauling the automaker’s factories in Mexico.

“This profound commitment to our localized capabilities will transform Volkswagen into one of the leading EV brands known for its commitment to innovation, quality, and the communities we call home,” Keogh said.

What Dealers Are Saying

“This is great news for us here in Quebec because demand has been exploding for electric vehicles. With more models and more importantly, with the capacity to meet demand, VW can take a serious option on the EV market here”, says a sales rep at Grenier Volkswagen in Terrebonne, Quebec.

“We are excited to see where Volkswagen goes from here, specifically its new electrified models. Vehicles like the ID.4 have been gaining traction in Ontario, but the model we are most hearing about from consumers in our showroom is an electric Atlas”, says a sales manager at Volkswagen Villa in Thornhill, Ontario.

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