VW considers expanding U.S. plant

BERLIN -- Volkswagen is considering an expansion of its Chattanooga plant in the United States to produce an electric pickup and the new ID Buzz electric microbus, a source close to the matter told Reuters.

The move would help the automaker to increase its market share in North America, which it identified in March as the region with the greatest growth potential, but which was unprofitable for several years before 2021.

VW said in March it was shifting production to the U.S. and China as a result of the war in Ukraine, which has caused production stoppages at its European plans because of parts shortages.

The automaker plans to invest at least $7.1 billion over the next five years in North America and add 25 new electric vehicles there by 2030, with the aim of 50 percent of sales to be electric by then.

The Chattanooga plant, its only U.S. plant so far, produces the Atlas and Atlas Cross Sport crossovers. It started pilot production of the ID4 full-electric crossover in March in preparation for a fall launch.

A top executive said in March that the ID Buzz would initially be imported from VW's plant in Hanover, Germany, but that it could be ultimately built in the U.S. or Mexico.

Earlier on Thursday, Manager Magazin reported that the company was planning to build a second production plant in the U.S., increasing its production capacity to up to 600,000 vehicles a year.

Citing stakeholders, the magazine said the new plant could be built next to the Chattanooga factory and that the automaker is also considering construction of a battery cell plant.

Volkswagen declined to comment.