Volkswagen is reportedly planning to build a second electric SUV in North America, following the start of production of the ID.4 at its Chattanooga, Tennessee plant last year.
VW decided last week, according to the German business newspaper Handelsblatt, to build a compact electric SUV smaller than the ID.4. The new model would be manufactured beginning in the middle of the decade, either in Chattanooga, Tennessee, or in Puebla, Mexico. A spokesperson for the publication confirmed such plans but declined to comment on specifics.
While the article does not mention on which platform the new EV would be based, the revised MEB+ architecture looks like a safe bet. This could mean the new model is likely to be made in Chattanooga, which is already building an MEB-based model, the US version of the ID.4.
Another advantage of the Chattanooga plant is that Volkswagen is said to be considering a battery cell plant in Canada’s Ontario province. The US plant is much closer to Canada than Volkswagen’s Mexican plant, which could mean a shorter transportation route.
According to the same report, Volkswagen’s PowerCo battery subsidiary has taken a step forward in its search for a site for Canada’s first battery cell factory, with Ontario listed as a possible location. According to a Volkswagen spokesperson, no final decision on the factory has been made.
Having said that, the automaker has already stated its intention to invest in material mines in the country. Furthermore, VW’s battery material partner Umicore is planning to build its first North American factory in the Canadian province of Ontario to produce cathode and precursor materials for EV batteries.
In terms of Volkswagen’s compact electric SUV, it is unclear which model the automaker is considering, but it could be the ID.3 SUV teased by VW brand CEO Thomas Schäfer in October 2022.
Schäfer stated at the time that Volkswagen Group’s core brand will launch ten new EVs by 2026, including a compact SUV based on the ID.3 hatchback. The ID.3 SUV will be smaller than the ID.4, likely mirroring the VW T-market Roc’s positioning in relation to the Tiguan.
According to Thomas Schäfer, the ID.3 SUV will look very different from the ID.3 when it arrives before 2026.
