VW starts ID.4 production in Tennessee, promising cheaper EVs

VW

Volkswagen is building the ID.4 electric SUV in Tennessee. It is the first EV manufactured in the US by the company and signals that a cheaper version of the ID.4 is on the way.

VW plans to increase production at its facility in Tennessee to 7,000 vehicles per month by the end of the year, with the goal of making even more vehicles per month in three years. The first deliveries are expected in October.

The ID.4 has been VW's most popular EV since it was released in 2021. The VW CEO said in May that the company had sold out on electric vehicles in Europe and the US for the year.

VW's supply problems should be helped by the start of ID.4 production in Tennessee. The company has a lot of reservations for the ID.4 and should be able to fulfill them.

This is significant because of pricing. The base model of the ID.4 was set to start at $40,000, but later went up to $41,230. The company wanted the ID.4s to cost between $35,000 and $27,500 with the tax credit. Pricing will be announced soon, but it is not known if that is still the case.

The cheaper ID.4 will come with a 62kWh battery as opposed to the more expensive version that comes with either rear-wheel or all-wheel drive. The larger battery packs are able to give 250 miles of range, but the 62kWh versions will likely have a more constrained range.

The ID.4's battery pack was initially produced by South Korea'sLG Chem. VW is using batteries from a South Korean company that just opened a $2 billion factory nearby.

Steel in Alabama and Ohio, interior parts in Indiana and South Carolina, and electronics components in Kentucky and North Carolina are some of the parts VW is promoting. In order to meet high customer demand for the ID.4 and Atlas SUV, VW plans to hire more than 1,000 new workers in the next four years.