Volkswagen’s $2.1 billion plan to launch a devoted electric-vehicle manufacturing facility in Wolfsburg, Germany is kaput.
The automaker as an alternative reportedly plans to switch its present crops in Zwickau and Wolfsburg to deal with manufacturing of a brand new flagship EV — the postponed Mission Trinity — and an all-electric Golf hatchback.
This tracks with an earlier assertion from VW passenger vehicles boss Thomas Schaefer, who mentioned final 12 months that an extra manufacturing facility won’t be obligatory as VW produces fewer combustion-engine automobiles over time. Nonetheless, this isn’t nearly making house for EVs; the automaker is in cost-cutting mode.
Actually, that’s placing it frivolously. In July, Schaefer mentioned VW’s “roof is on fireplace” in a gathering with senior leaders, citing the corporate’s have to overhaul its “advanced, gradual, and rigid” processes. An enormous issue right here was VW’s delayed embrace of EVs, which led it to lose severe floor to BYD in China.
VW nonetheless hasn’t actually proved itself in electrics — in actual fact, only a couple days in the past Reuters reported that the automaker would quickly pause manufacturing of two EVs — the ID.3 and Cupra Born — as a consequence of decreased demand.