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Volkswagen reacts to geopolitical risks: Herbert Diess plans US offensive in Chattanooga

2022-04-28T08:47:21.411Z


CEO Herbert Diess is planning a second plant at the Chattanooga site. In-house battery cell production and the production of the ID.Buzz are also options.


Enlarge image

Model for a new beginning:

VW boss

Herbert Diess

(right) can well imagine the ID.Buzz in the USA

PHOTO: JOHN MACDOUGALL / AFP

The Wolfsburg car manufacturer Volkswagen wants to significantly expand its activities in the US market.

According to manager magazin, CEO

Herbert Diess

(63) is planning to build a second plant in the USA.

It could be built right next to the current Chattanooga factory, stakeholders confirmed.

The capacity in the USA could thus be expanded to up to 600,000 vehicles per year.

In addition, the construction of a battery cell plant is also being considered, probably near the plant in Chattanooga.

The new American offensive is also a reaction to the new geopolitical situation.

The war in Ukraine is particularly damaging to Europe, according to Wolfsburg.

The importance of having a strong presence throughout the rest of the world is becoming correspondingly more important.

In order to reduce dependence on China at the same time, the automaker wants to strengthen its US business.

There is still no final decision, insiders explain.

But Diess was determined to go on the offensive.

In particular, the core brand VW has not been particularly successful in the USA so far, with a market share of 2.5 percent last year.

Diess sees the electrification of the models as an opportunity to restart.

In particular, the electric van ID.Buzz, which has just been presented, offers potential to strengthen the VW brand again in the USA.

Production of the E-Bulli started this year in Hanover.

The ID.Buzz could also be built in Chattanooga, insiders report.

In the same way, the production of a pick-up truck especially for the US market is being considered.

Source: spiegel

All news articles on 2022-04-28

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