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Volkswagen plans a North America factory to build EVs

Its electric car, which is yet to be revealed, is expected to ship in 2020.
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Bloomberg via Getty Images

Volkswagen is planning a new factory in North America to build electric vehicles for the market, and the automaker is exploring potential sites. Scott Keogh, the new Volkswagen Group of America CEO, said at the LA Auto Show that VW's existing plant in Chattanooga, Tennessee could fit the bill, as there's enough space, but the company won't necessarily pick that location.

VW has yet to reveal its electric car, which will cost $30,000-$40,000, but plans to start shipping it in 2020. To stay on course for that timeline, it will build the cars elsewhere to start with then shift production to the new plant -- it's currently building an EV factory close to Shanghai. The company said this month it will invest around $50 billion in autonomous and electric vehicles as well as other mobility services over the next five years.

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