Europe’s largest automaker, Volkswagen, is delaying plans for a fourth EV battery manufacturing unit for now. CEO Oliver Blume stated the choice was based mostly on market circumstances in Europe.
Volkswagen pushes again fourth EV battery plant plans
The Volkswagen Group introduced plans to open six gigafactories by the tip of the last decade. VW has already chosen three websites, together with one in Salzgitter, Germany, one other in Valencia, Spain, and the latest in St. Thomas, Ontario.
Volkswagen initially deliberate for the third to be in Europe however selected North America to reap the benefits of IRA incentives.
The corporate has been looking for its fourth in Japanese Europe for over a 12 months, contemplating websites within the Czech Republic, Hungary, Poland, and Slovakia.
Though the Czech Republic has been pulling for VW to ascertain a plant, officers stated they may not wait any longer and would provide the positioning to others. The information comes after Blume met with Czech officers this week, in response to Automotive Information.
Blume defined that “there’s in the intervening time no enterprise rationale for deciding on additional websites.” VW CEO stated the choice was “based mostly on market circumstances, together with the sluggish ramp up of the BEV market in Europe.”
Volkswagen is already in the midst of constructing three amenities. Blume stated the three vegetation have as much as 200 GWh manufacturing capability yearly.
The information comes after the corporate’s CFO, Arno Antlitz, stated EV orders had been down 50% in Europe from 300,000 final 12 months to 150,000.
Europe is Volkswagen’s greatest EV market, accounting for over 60% of world gross sales. Its second largest, China, can be in danger. Antlitz defined the automaker might lose market share within the area till new fashions with XPeng start rolling out.
Electrek’s Take
Volkswagen delaying its fourth EV plant comes after a number of main automakers, together with Ford, GM, and Toyota, pushed again their very own plans.
Ford stated it could push again its 600,000 EV run charge aim for an additional 12 months whereas delaying round $12 billion in deliberate manufacturing investments.
GM is delaying manufacturing of the Equinox EV, Silverado RST EV, and GMC Sierra EV Denali. Each automakers revealed battery plant delays as nicely.
Toyota introduced Wednesday it’s slicing its EV gross sales forecast for the fiscal 12 months by practically 40%. The Japanese automaker stated the transfer was because of the “intensifying value struggle” in China.
Regardless of this, Toyota surprisingly invested an extra $8 billion into its North Carolina EV battery plant, bringing the full to roughly $13.9 billion.
Automakers investing now will see the advantages as EV adoption is barely anticipated to proceed climbing from right here on out. These delaying plans now will fall additional behind as leaders like Tesla and BYD quickly acquire market share globally.
Volkswagen cited “sluggish” EV gross sales in Europe, however Tesla’s Mannequin Y was the best-selling passenger car (gasoline or electrical) in September. That is the sixth time the EV has earned the title in 9 months. How is that so?
Tesla is constructing EVs individuals need to purchase, offering worth to clients. In the meantime, some consumers aren’t seeing the worth in Volkswagen’s EVs. The automaker has struggled with software program and different options, which has led to sluggish orders. That’s to not say Volkswagen EVs are dangerous. They’re simply missing that Tesla-like enchantment.
