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November 13, 2023 | Tom Ballard

VW exploring under $35,000 EV that could be added to Chattanooga lineup

The new vehicle is expected within the next three to four years and could join the ID4 that is built in Chattanooga.

According to an article in Motor Illustrated based on a recent statement from a top executive at a Reuters conference covered by Automotive News, Volkswagen Group has set its sights on the U.S. electric vehicle (EV) market, aiming to launch an EV costing less than $35,000 within the next three to four years.

The report says Volkswagen is currently evaluating several of its manufacturing locations for this purpose, including existing plants in Chattanooga and Puebla, Mexico. Additionally, a new assembly plant in South Carolina is under consideration, intended for the VW subsidiary Scout.

The Motor Illustrated article goes on to say that Volkswagen’s strategy reflects a broader commitment to electric mobility, with plans to potentially localize battery pack production to leverage additional incentives available under the U.S. Inflation Reduction Act. This would represent a continuation of the company’s strategy to build battery cells in Canada for EVs produced for the North American market.

In Chattanooga, the ID4 electric compact crossover is already in production, with a redesign planned for 2026 that may introduce a more affordable and rugged variant.

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