Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Volkswagen to invest $800 million in US electric car

Volkswagen is investing billions of dollars to build an electric car in its US plant.

car similar to Volkswagen electric car Source: Bloomberg

Volkswagen AG (Ord) is heavily investing in electric vehicles. The German automaker is spending $800 billion to build its new electric car, ID Crozz EV, in Chattanooga, Tennessee.

Why is the next Volkswagen electric car in the US?M/h3>

Volkswagen is ramping up production of US automobiles with its expansion of its plant in the southern US state of Tennessee. The $800 million expansion will create about 1000 jobs and help the world’s largest automaker compete with upstarts like Tesla. In a statement, Volkswagen chief executive officer(CEO), Herbert Diess, noted that the expansion will help the corporation grow its US customer base.

‘The US is one of the most important locations for us and producing electric cars in Chattanooga is a key part of our growth strategy in North America.The management team…is committed to continuing to increase our market share in the coming years,’ said Diess in a statement.

Volkswagen predicts that the ID Crozz will be available for sale in 2020 and production at the US plant is slated to start in 2022.

How will the US benefit from the Volkswagen electric car?

The Volkswagen deal is certain to benefit the growth of electric vehicles in the US. By producing the cars in the US, the cost of the electric vehicle will likely come down with the mass production of the ID Crozz. The investment is also sure to jumpstart vehicle production in the US. Tennessee governor, Bill Haslam, noted that the electric car development will be a boon to the southern US state.

‘The shift toward electric vehicles is a trend that can be seen worldwide, and Volkswagen’s decision to locate its first North American EV manufacturing facility in Chattanooga underscores Tennessee’s manufacturing strength and highly-skilled workforce. As one of Hamilton County’s top employers, these additional 1000 jobs will have a lasting impact on the region’, said Haslam.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See an opportunity to trade?

Go long or short on more than 13,000 markets with IG.

Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.

Find your market

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Tuesday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.