Volkswagen reportedly said Wednesday it’s looking for a new North American production facility, which it will use to build electric vehicles, just days after General Motors announced its plans to shutter several plants and cut about 14,000 employees.
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While speaking to reporters at the Los Angeles Auto Show, the brand’s U.S. CEO Scott Keogh said the company is holding conversations now about opening an electric-car plant in North America, according to NPR.
"We are 100 percent deep in the process of 'We will need an electric car plant in North America,’” he said.
The German company’s plan is to eventually introduce an electric car -- estimated to cost between $30,000 and $40,000, which is similar to the Tesla Model 3 and Chevrolet Bolt -- sometime in 2020. Additional details about the car were not shared.
Production for the new vehicle will initially take place outside of the U.S. in order to meet the timeline.
But, Europe’s largest carmaker suggested that Chattanooga, Tenn. is a possible option for its new plant, because its existing facility there has enough room to be expanded, according to Reuters.
Earlier this month, Volkswagen announced that it would spend about $50 billion on developing electric vehicles, autonomous driving and new mobility services by 2023.