German automaker Volkswagen on Monday said it will invest $800 million toward the expansion of a plant in Chattanooga, Tennessee that will manufacture new electric vehicles.
The plan will create 1,000 new jobs, as well as supporting roles at parts suppliers, the company said in a press release. Volkswagen said the first electric car built at the Chattanooga facility will hit the market in 2022.
“We could not be prouder to build the future of mobility here in the U.S.,” said Scott Keogh, CEO and president of Volkswagen Group of America. “We’re known as ‘the people’s car’ for a reason, and our EVs will build on that tradition.”
Volkswagen has set a goal of selling one million electric vehicles annually by the year 2025. The company is building an electric vehicle production facility in Zwickau, Germany, and is adding production capabilities at other facilities in Germany and China over the next three years.
The announcement coincided with the start of the North American International Auto Show in Detroit, Michigan. President Trump has threatened to slap tariffs on European automakers if they do not invest in new facilities in the United States.
Volkswagen said the Tennessee plant will produce cars using its modular electric toolkit chassis (MEB), the platform that serves as the basis of its planned electric vehicle lineup. The company plans to invest nearly $50 billion toward the development of electric vehicles and related services through 2023.
The company had faced billions of dollars in fines after regulators uncovered evidence that it installed software that allowed its vehicles to cheat U.S. emissions tests.
The Associated Press contributed to this report.