Volkswagen starts assembly of all-electric ID.4 flagship in Tennessee

Volkswagen of America has commenced production of its all-electric ID.4 compact SUV in Chattanooga, Tennessee., the company’s first electric vehicle assembled in the United States.

The ID.4 is Volkswagen Group’s most popular all-electric model, with 190,000 units delivered to customers globally since its launch in 2021.Volkswagen aims to ramp up ID.4 assembly in Chattanooga to 7,000 vehicles per month later this year, with the goal to further increase output through 2023. Consumer deliveries are expected toi begin from October 2022. Initially, the American-assembled ID.4 will be available in either rear-wheel- or all-wheel-drive 82kWh battery form. In addition, a rear-wheel-drive version with a 62kWh battery will go into production later in 2022, with a lower MSRP.

“We’re just starting to write a new chapter for Volkswagen in America, and it is very much an American story,” said Thomas Schäfer, Chairman of the global Volkswagen brand. “When we promised to bring Volkswagen EVs to the millions, it always included American workers building those EVs right there in Chattanooga. We couldn’t be prouder to see that vision realized today with our ID.4 electric flagship rolling off the lines. This is another milestone in Volkswagen’s ambitious electrification strategy for the U.S. market and globally.”

The start of production is the result of Volkswagen’s $800 million (Rs 6,381 crore) investment into the electrification of its Chattanooga factory, including dedicated facilities for vehicle and battery pack assembly. The factory in Tennessee is now the sixth global site to produce vehicles for Volkswagen’s electric line-up.

The American-assembled ID.4, Volkswagen’s electric SUV flagship, will be mainly sourced in the North American region, particularly the United States. The vehicle includes materials and components assembled in 11 U.S. states, from steel in Alabama and Ohio, to interior parts in Indiana and South Carolina, and electronics components in Kentucky and North Carolina. The EV battery will be supplied by SK Innovation located in Georgia.

As part of the preparation to launch the ID.4, suppliers have invested $2.7 billion (Rs 21,538 crore) throughout the North American continent, including the battery partnership with SK Innovation. More than 3,000 U.S. jobs on supplier side have been created.

Volkswagen Chattanooga employs more than 4,000 people, and is actively hiring more than 1,000 new production team members through 2022, to help meet high customer demand for the ID.4 and Atlas SUV family. To prepare for the EV transition, the factory has organized more than 75,000 hours of workforce training on battery powered vehicle and high-voltage systems.

Volkswagen has committed $7.1 billion (Rs 56,636 crore) over the next five years in the North American region to boost its product portfolio, regional R&D and manufacturing capabilities. The brand will advance its electric line-up through 2030, including the American-assembled ID.4 in 2022, a fastback sedan and the ID. Buzz electric microbus in 2024, and new electric SUVs from 2026. Volkswagen aims for 55 percent of U.S. sales to be fully electric by 2030.