Volkswagen’s $2.1 billion plan to launch a devoted electric-vehicle manufacturing unit in Wolfsburg, Germany is kaput.
The automaker as an alternative reportedly plans to change its current crops 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 Schaefer, who stated final yr that a further manufacturing unit may not be essential as VW produces fewer combustion-engine autos over time. Nonetheless, this isn’t nearly making area for EVs; the automaker is in cost-cutting mode.
Actually, that’s placing it frivolously. In July, Schaefer stated VW’s “roof is on fireplace” in a gathering with senior leaders, citing the corporate’s have to overhaul its “complicated, 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 reality, only a couple days in the past Reuters reported that the automaker would briefly pause manufacturing of two EVs — the ID.3 and Cupra Born — attributable to decreased demand.