VW Planning A New North American Factory For Electric Cars

Tax cuts on business are working

Spurred by Trumps reduced taxes on business to attract new manufacturing in the USA, Volkswagen is scouting a location in North America for a new production factory to build electric vehicles, CEO Scott Keogh told reporters on Wednesday.

"We are 100 percent deep in the process of 'We will need an electric car plant in North America,' and we're holding those conversations now," Keogh told reporters at the Los Angeles Auto Show.

Keogh's announcement comes days after General Motors said it will halt production next year at five North American plants, including four U.S. plants…..but would increase production at truck plants and start new production on more electric cars.

The German company is planning to introduce a $30,000 to $40,000 electric vehicle in 2020, the CEO of Volkswagen Group of America said. The model's specifics are currently under wraps.