Volkswagen ups investment in Chattanooga with 1,000 jobs + $800 million for electric cars

Chattanooga will be Volkswagen’s North American base for making electric vehicles.

The global company — which already has a local plant here — announced Monday it will invest $800 million into the Chattanooga facility + create 1,000 new jobs.

A local VW spokeswoman said that the expansion for the electric vehicle does not mean a new, separate facility, but it does mean the addition of a new assembly line at the existing facility.

Officials made the announcement at the Detroit Auto Show.

“The U.S. is one of the most important locations for us and producing electric cars in Chattanooga is a key part of our growth strategy in North America,” VW CEO Dr. Herbert Diess said.

The addition of electric is also part of the company’s move away from diesel after the company’s 2015 emissions debacle.

Volkswagen Chattanooga currently builds the Passat sedan and the midsize Atlas SUV.

A five-seat version of the Atlas, the Atlas Cross Sport, will begin production in Chattanooga later this year.

Here’s everything you need to know about the big news. ⬇️

What we know

— Volkswagen Chattanooga will build an electric crossover. That means the vehicle will have the interior space of a midsize SUV but the footprint of a compact SUV. 🚗

— Production of the electric vehicle will start locally by 2022. 🗓️

— The new electric vehicle will be made in the existing VW plant.

— The local investment is part of a global strategy for VW + represents a major investment in electric vehicles.

— Hiring for the new jobs will likely start in 2020 and/or early 2021.

— This investment also likely means additional jobs during the construction phase + the potential to draw more suppliers/work to the area.

What we don’t know

— It’s not clear whether there will be financial incentives from state + local governments for the electric vehicle production. State officials said they are still in negotiations about that. 💸

— We don’t know yet exactly what kinds of skills will be needed for the new jobs.

— It’s also unclear what — if anything — this means for Volkswagen Academy. 🔧

By the numbers

— VW is committing $50 billion through 2023 toward electric vehicle development globally.

— VW forecasts selling 150,000 electric vehicles by 2020 + 1 million EVs by 2025 worldwide.

— Volkswagen’s Chattanooga facility comprises more than 3 million square feet and is situated on 1,400 acres.

— VW Chattanooga has received more than $800 million of federal, state and local financial incentives.

— Volkswagen currently employs about 3,500 people.

Reactions

“Now our job is to double down on making sure we have the educated, highly trained workforce to fill these 1,000 new 21st Century jobs that are coming to Hamilton County.”

— Hamilton County Mayor Jim Coppinger

“Congratulations #Chattanooga! Huge boost to their economy down there. #jobs #Volkswagen” @JasonBoyerWLOS

“They believe in our workforce.” — Chattanooga Chamber President & CEO Christy Gillenwater

“I feel like Tennessee has been a big topic of conversation [at the Detroit Auto Show.]”

— Jessica Caldwell, senior analyst with Edmunds.com (A new Cadillac crossover will also be made in Spring Hill, Tennessee)

Timeline ⌛

— July 2008: Officials announce Volkswagen is coming to Chattanooga

— February 2009: Construction starts on the new local plant

— June 2010: Volkswagen Academy (which trains VW workers) opens

— August 2010: 1,000th VW employee hired

— April 2011: First customer car comes off the assembly line

— May 2011: Grand opening of Chattanooga plant

— July 2011: 2,000th employee hired

— May 2012: 100,000th Passat produced

—January 2012: Power-up of Volkswagen Chattanooga solar park

— May 2013: 250,000th Passat produced

—August 2013: Volkswagen Academy inaugural graduation ceremony

— July 2014: VW announces new SUV will also be made in Chattanooga

— January 2015: Expansion to build new SUV, called the Atlas, starts

— July 2015: 500,000th Passat built

— December 2016: Production of Atlas starts

— May 2017: First customer Atlas delivered

— March 2018: Officials announce new five-passenger SUV, called the Atlas Cross Sport, will be made in Chattanooga

— May 2018: 700,000th Passat made

— July 2018: 10th anniversary of factory announcement

— October 2018: 100,000th Atlas assembled

— January 2019: Electric vehicle announcement

#Asked

Jobs announcements of this size are always big deals.

Volkswagen Chattanooga currently employs about 3,500 people. And the company’s investment here has created more jobs than that because auto suppliers have also located here and hired people. Read more about the economic impact + multiplier-effect here.

Do you know someone who has been impacted by Volkswagen’s investment here?

We want to hear from you about it.

Drop us a note to hello@noogatoday.com and share how Volkswagen’s presence has affected you or someone you know.