Volkswagen ID.4 production kicks off in Tennessee to help cut the electric SUV's costs
ID.4 compact SUV is the brand's first dedicated electric vehicle in the U.S.
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Volkswagen has initiated production of its electric ID.4 SUV at its factory in Chattanooga, Tennessee.
The model is currently imported from Germany and has a starting price of $42,525.
Volkswagen has delivered over 190,000 ID.4s worldwide since it went on sale last year, including 16,742 in the U.S., but only 4,415 in the U.S. through the first six months of 2022.
The automaker has previously said it hopes it will be able to reduce the cost of the U.S.-built cars closer to $35,000, but it has not announced official pricing.
Production of the VW ID.4 is underway in Tennessee. (Volkswagen / Fox News)
Volkswagen intends to increase production in Chattanooga to a rate of 7,000 cars monthly by the end of this year, all of which will be earmarked for U.S. and North American sales.
VW aims to build 7,000 ID.4s per month at its Chattanooga factory. (Volkswagen / Fox News)
The assembly line is part of an $800 million investment in U.S. electric vehicle production, and many of the ID.4's parts, including its battery pack, will be supplied by U.S.-based companies.
The ID.4 currently has a starting price of $42,525. (Volkswagen / Fox News)
The state of Tennessee gave the company a $50 million incentive package in 2019 to support manufacturing at the site, and Volkswagen said it will be adding 1,000 employees to the 4,000 that already work at the plant as part of the expansion.
Along with the ID.4, the Chattanooga factory also produces the Atlas and Atlas Cross Sport SUVs.
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Deliveries of the Chattanooga-made ID.4s are expected to begin in October.