VW bails on its plan for a $2.1B EV plant in Germany

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 modify its existing plants in Zwickau and Wolfsburg to deal with manufacturing of a brand new flagship EV — the postponed Project Trinity — and an all-electric Golf hatchback. 

This tracks with an earlier assertion from VW passenger automobiles boss Thomas Schaefer, who said last year that a further manufacturing unit won’t be obligatory as VW produces fewer combustion-engine autos over time. Nonetheless, this isn’t nearly making house for EVs; the automaker is in cost-cutting mode.

Actually, that’s placing it calmly. In July, Schaefer stated VW’s “roof is on fire” in a gathering with senior leaders, citing the corporate’s have to overhaul its “advanced, gradual, and rigid” processes. A giant issue right here was VW’s delayed embrace of EVs, which led it to lose critical floor to BYD in China.

VW nonetheless hasn’t actually proved itself in electrics — actually, only a couple days in the past Reuters reported that the automaker would temporarily pause production of two EVs — the ID.3 and Cupra Born — on account of decreased demand.