Volkswagen’s $2.1 billion plan to launch a devoted electric-vehicle manufacturing unit in Wolfsburg, Germany is kaput.
The automaker as a substitute reportedly plans to modify its current vegetation in Zwickau and Wolfsburg to deal with manufacturing of a brand new flagship EV — the postponed Undertaking Trinity — and an all-electric Golf hatchback.
This tracks with an earlier assertion from VW passenger automobiles boss Thomas Schäfer, who mentioned final 12 months that an extra manufacturing unit may not 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 evenly. In July, CEO Thomas Schaefer mentioned VW’s “roof is on fireplace” in a gathering with senior leaders, citing the corporate’s must overhaul its “complicated, sluggish, 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 truth, 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 result of decreased demand.
