Volkswagen AG plans to invest $7.1 billion over the next five years in North America and add 25 new electric vehicles to its production in the region by 2030, a senior executive said on Monday.
The German automaker expects 55% of its US sales to be entirely electric vehicles by 2030, according to Scott Keough, president and CEO of Volkswagen Group of America. This compares with the goal of 70% of electric cars in Europe by 2030.
Volkswagen will begin phasing out its gasoline-powered models in North America, aiming to phase out sales of combustion-engine vehicles early in the next decade.
Keogh said the company will start manufacturing the ID.4 electric model this year and plans to sell its new electric minibus. id In the United States in 2024. The company has not decided whether to build id in North America.
Volkswagen will build the ID.4 at its plant in Chattanooga, Tennessee, and upgrade its Mexican plants in Puebla and Silao to begin manufacturing electric vehicles, engines and related components by the middle of the decade.
Keogh said the company also plans to ramp up battery production in the United States, where it has a partnership with South Korea’s SK Innovation.
