Volkswagen’s $2.1 billion plan to launch an exclusive electric vehicle factory in Wolfsburg, Germany is kaput.
Instead, the automaker plans modify your existing plants in Zwickau and Wolfsburg will take over the production of a new flagship electric vehicle: the postponed Trinidad Project – and an all-electric Golf hatchback.
This follows an earlier statement from VW passenger vehicles boss Thomas Schaefer, who said last year that an additional factory might not be necessary as VW produces fewer combustion engine vehicles over time. Still, it’s not just about making room for electric vehicles; The automaker is in cost-cutting mode.
Actually, that’s putting it lightly. In July, Schaefer said that VW “the roof is on fire” in a meeting with senior managers, citing the company’s need to review its “complex, slow and inflexible” processes. An important factor here was the delayed adoption of electric vehicleswhich led him to lose a lot of ground against BYD in China.
VW has not yet proven itself in the electric sector; In fact, just a couple of days ago Reuters reported that the automaker temporarily pause production of two electric vehicles, the ID.3 and Cupra Born, due to declining demand.
