What’s happening
VW has begun assembly of its all-electric SUV on US shores.
Why it matters
This should help improve supply while also bringing more jobs to Tennessee.
What’s next
A cheaper, smaller-battery flavor of the ID 4 is due next year.
If you prefer US-made cars, you can today add Volkswagen’s ID 4 to your list. Well, to the list of products assembled in the US, anyway. VW today delivered on its long-pledged promise to bring EV production to its Chattanooga, Tennessee, factory, with the first cars rolling off the line now ahead of anticipated October deliveries. It joins other American-assembled EVs such as Tesla’s sedans and SUVs, GM’s Bolt family, the Nissan Leaf and the upcoming Cadillac Lyriq.
Plans for this were announced way back in the beginning of 2019, with VW making an $800 million investment into its Chattanooga facility to enable production of what back then was still called the ID Crozz. Today, US-made ID 4 vehicles will use components “mainly” sourced from North America, including Alabama steel and Georgia battery packs from SK Innovation.
Something had to go to make room for ID 4 production, and sadly that something was the Passat. VW’s venerable sedan was just one of many four-doors put to pasture over the past few years as consumers demand more and more crossover SUVs. With that, Chattanooga becomes the sixth facility globally capable of producing VW’s MEB-based EVs, a platform that includes the not-for-US ID 3 and the long-awaited ID Buzz.
The first flavors of ID 4 built in the US will be all- or rear-wheel-drive with the larger 82-kilowatt-hour battery pack. The promised, more affordable, 62 kWh version is still on target for next year. No pricing on that yet, but we’re hoping it’ll fall somewhere in the mid-$30,000 range.
