The new head of Volkswagen AG's U.S. unit confirmed the German auto maker plans to build electric vehicles in North America by 2020, potentially at its Chattanooga plant, according to MarketWatch.
Hinrich Woebcken said Chattanooga or a sprawling production facility in Mexico are among options being considered for the production of the new electric vehicles. He declined to give specific details on the search, but said multiple models will be built in North America.
Installing electric car production in the U.S. would be an olive branch to regulators who hit Volkswagen hard in recent months. The Environmental Protection Agency and California's influential Air Resources Board are pushing auto makers to offer more electric vehicles even as gasoline prices are low.
"We believe that this country, especially in urban mobility, will have a very strong shift from petrol engines into hybridization and electric cars," Woebcken said. "We are heavily investing in this one -- including production in this North American region."