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VW may soon make a compact electric SUV in the US

Volkswagen has decided it will manufacture another electric SUV in North America, and it will be smaller than the ID.4, reports German newspaper Handelsblatt.

Volkswagen’s new compact SUV will be made at either its plant in Chattanooga, Tennessee, or at its Puebla, Mexico, manufacturing center from the middle of the decade. Handelsblatt reports that a Volkswagen spokeperson confirmed the plans, but would not comment on details.

(It would make a lot more sense, from a sales perspective, if VW made this SUV in Tennessee, seeing how it has to be made in the US in order for the customer to qualify for the Inflation Reduction Act’s $7,500 tax credit.)

The compact SUV could possibly be an SUV version of the ID.3, as Volkswagen Passenger Cars CEO Thomas Schäfer said in a LinkedIn post at the end of October.

In November, VW reported that it had achieved delivery of 500,000 ID deliveries globally a year early. It also said that it had another 135,000 EVs in the order bank – a 65% increase compared to 2021. 

Volkswagen says it will build only EVs in Europe from 2033 at the latest, and that 50% of all sales and deliveries will be electric in the US and China by that same year.

Top comment by Ron R

Liked by 8 people

I was hoping for a hot hatch, about the size of a current Golf or even an ID.3, but at least this is smaller than the ID.4. Depending on price and features, I think this would do very well in the US. Seems like it would be competition for the Bolt EUV (and a small Tesla, if they commit to doing one).

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Volkswagen is considering Ontario, Canada, as a potential site for one of its battery cell plants. There’s evidence of this on the province’s Office of the Integrity Commissioner’s website, including VW CEO Oliver Blume:

Handelsblatt reported that a VW spokesperson confirmed that the group is “currently evaluating suitable locations for a first gigafactory in North America.” 

Photo: Volkswagen

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Avatar for Michelle Lewis Michelle Lewis

Michelle Lewis is a writer and editor on Electrek and an editor on DroneDJ, 9to5Mac, and 9to5Google. She lives in White River Junction, Vermont. She has previously worked for Fast Company, the Guardian, News Deeply, Time, and others. Message Michelle on Twitter or at Check out her personal blog.