Volkswagen to spend $300 million more on electric vehicle network, eyeing spring building start for Chattanooga plant

Staff photo by Mike Pare / VW subsidiary Electrify America continues to build out its electric vehicle charging network nationally. The company has an EV station at the Walmart in Ooltewah.
Staff photo by Mike Pare / VW subsidiary Electrify America continues to build out its electric vehicle charging network nationally. The company has an EV station at the Walmart in Ooltewah.

POWERING UP

Electrify America has 105 electric vehicle charging sites with 465 chargers which are operational and open to the public nationwide so far.

While Volkswagen eyes a spring start to building a Chattanooga electric vehicle plant, a subsidiary that's putting up a nationwide charging network plans to spend another $300 million.

Also, a top Ford official has told CNBC that it's increasingly unlikely the American automaker and VW will work together on electric vehicles.

VW last month unveiled plans for an $800 million factory to build battery-powered vehicles next to its existing plant, and its Electrify America subsidiary now said it will focus new spending on growing its charging infrastructure in 18 metro areas, including Atlanta.

Electrify America spokesman Mike Moran said the biggest concern among EV drivers is the worry they won't get to their next travel point before running short of power.

"Range confidence is probably the biggest thing an EV owner wants," he said.

Electrify America's new 30 month spending cycle, which starts in July, will continue to focus on some metro areas where it already has invested infrastructure, such as Boston, Chicago, Denver, Miami, New York City and others. Also, it will also invest more in Atlanta, Baltimore, Las Vegas and Phoenix.

The 18 metros in which it's spending more are expected to account for over 50 percent of the number of electric vehicles in operation outside California through 2022, according to the company.

In addition, Electrify America plans in its new spending cycle to keep developing its highway network of ultra-fast charging stations.

The company began its build out in 2017 when VW agreed, as part of its settlement with the EPA over the diesel emissions scandal, to spend $2 billion in EV infrastructure and education over 10 years.

Electrify America is spending $500 million through this summer with plans to have 484 power stations, with more than 2,000 charging dispensers, installed or nearly so across the country by mid-2019. One in Hamilton County opened last year at the Ooltewah Walmart.

The VW subsidiary is building out the network as the German automaker prepares for offering its first purpose-built EV in 2020 with a hatchback about the size of a Golf. While this vehicle won't be offered in the United States, an all-electric SUV will come later next year, according to VW.

That SUV, currently dubbed the I.D. Crozz, is slated to be made in Chattanooga starting in 2022.

Later, a modern reincarnation of the VW microbus, called the I.D. Buzz, is scheduled to be sold in the U.S., though a production site hasn't been announced. Also, the I.D. Vizzion, a sedan, has been announced by VW.

Volkswagen has said that it plans to make a million EVs annually by 2025 across its group of brands, which include Audi and Porsche.

Matt DeLorenzo, senior managing editor for Kelley Blue Book, said VW officials believe the EVs will help put the diesel scandal behind the automaker. He said it remains to be seen how the EVs perform in terms of sales.

"That's a huge bet on their part," DeLorenzo said.

Meanwhile, while VW and Ford announced plans last month to team up on the development of light commercial vehicles, Ford executive Jim Farley told CNBC that the two EV programs are out of sync.

While VW is largely building low-cost, passenger cars and SUVs with its initiative, Ford is focusing more on commercial and performance vehicles, Farley said.

Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318. Follow him on Twitter @MikePareTFP.

Upcoming Events