Volkswagen will invest $7.1 billion in North America over the next five years. The money will fund product line expansion, research and development, and manufacturing. The automaker’s goal is for 55% of U.S. sales to be all-electric by 2030.
The manufacturing investment will allow VW to begin building the ID.4 at its Chattanooga, Tennessee, plant in 2022. The automaker will also build the ID. Buzz in North America from 2024, and an unnamed electric crossover will begin production in the region in 2026.
VW will begin phasing out gasoline vehicle production in North America. It will completely stop offering them in the early 2030s.
The automaker will also invest in its factories in Puebla and Silao in Mexico to give them the capacity to manufacture electric vehicles and their necessary components like electric motors.
VW intends to build a battery cell production plant in the United States. A final decision on this should be made in 2022, according to this announcement.
In terms of R&D, the engineering and design of the body and interior of vehicles destined for North America will occur in this region by 2030. It will also invest $22 million in a laboratory of battery engineering in Chattanooga where the company will test and validate batteries for models available in North America.
Elsewhere in the world, VW will invest 2 billion euros to build a new plant near its main plant in Wolfsburg, Germany. The site will build the electric model there from its Trinity project. Construction will begin in the spring of 2023. Once complete, the plant will be able to pump a full car in about 10 hours – about half the time of a current product.
There are only a few details available on the Trinity project at this time. According to the plan, it will be capable of Level 4 autonomous driving and will have a new design language for the brand. The first model to use these innovations will have an estimated cost of around €35,000. Charging would be as fast as refueling a combustion engine.