Volkswagen to invest $800 million into Chattanooga EV production

Following a successful 2018 sales year, Volkswagen has announced plans to invest in its U.S. operations. In addition to offering a refreshed 2020 Passat, VW will create 1000 new jobs by injecting $800 million into its Chattanooga, Tennessee, facility, which will become its hub for North American electric vehicle production.

A production version of the ID CROZZ electric crossover concept—utilizing the new modular MEB platform—will be the first EV offering produced by the facility in 2022, but a German-built version will be available to purchase in the U.S. for the 2020 model year. Even more exciting, a production version of Volkswagen’s microbus successor, the all-electric ID BUZZ, will also begin production “shortly after” the launch of the ID CROZZ.

Following the news on its electric expansion, VW debuted the refreshed 2020 Passat as part of what CEO Dr. Herbert Diess affectionately called the brand’s “American comeback story.” The car features a handsome (if somewhat subdued) facelift with safety options and tech geared specifically towards American buyers. Both Diess and North American CEO Scott Keogh made a point of highlighting efforts to “focus on value” with the new offering.

The updated Passat will be produced in VW’s Chattanooga facility, alongside the current Tiguan SUV and future EV offerings. It’s slated to hit showroom floors in summer 2019.