VW starts building electric vehicles in US factory: just-in-time production
The timing couldn’t be much better for Volkswagen began building electric vehicles at its US facility in Chattanooga, Tennessee, just as the United States passed new requirements for the construction of electric vehicles in North America to receive their fair share of a federal tax credit of up to $7,500 for the purchase of an electric vehicle.
“We are delighted that the 2023 model year ID.4 is rolling off the assembly line,” he said in Chattanooga Hey ShepherdSenior Vice President, Product Marketing and Strategy at Volkswagen of America Inc., Herndon, Virginia.
In a webinar hosted by the New York-based company International Motor Press Associationsaid shepherd to the new one Volkswagen ID.4 The electric crossover vehicle is now the brand’s “fastest selling” model in the US lineup, with 30,000 pre-reservations.
More EV models will follow, Schafer said.
The decisions that led to the production of electric Volkswagens in the United States were arguably set in motion years ago, but it’s great optics for Volkswagen to launch the new US-built model so soon after US Inflation Reduction Act came into force on August 16.
VW’s announcement of the start of US production will be one among many, as other import brands do their best to speed up existing conversion plans EV production to North America.
It’s about a lot. In August, the Alliance for automotive innovationsa trade group for automakers, said the inflation-reducing law would disqualify 70% of the 72 electrified models then eligible for tax credits, including battery, plug-in hybrid and fuel cell electric vehicles.
Congress also passed new phased-in requirements for where automakers source EV battery content like lithium to reduce reliance on China.
According to the Alliance for Automotive Innovation, there are currently no electric vehicles on the market that would meet the new content restrictions.
Volkswagen’s Schäfer said there was still “legal back-and-forth” over whether VW would comply with future battery content regulations. Still, he said the start of the North American gathering was a “step in the right direction.”