Volkswagen is transferring forward with plans to construct electrical autos in Mexico. Holger Nestler, president and CEO of Volkswagen Mexico, says the automaker will present two funding packages to advance EV manufacturing.
Volkswagen to construct electrical autos in Mexico
Talking with Forbes Mexico, Nestler stated the aim will not be solely to provide EVs, however to construct them extra sustainably.
Volkswagen will make investments $750M, the primary of two packages, to rework its facility in Puebla. The VW plant in Puebla is the most important auto manufacturing unit in Mexico and one of many largest inside its community.
The plant at present produces fashions together with the Jetta, Beetle, Golf, and Tiguan Lengthy Model.
Nestler defined within the interview that Volkswagen plans to provide electrical autos in Mexico. He added, “However first we’ve to start out with a metamorphosis of the trade.”
VW Mexico’s chief stated the automaker is upgrading its facility to incorporate “state-of-the-art expertise.” In accordance with Nestler, “giant investments” shall be revamped the subsequent one to a few years to develop new electrical fashions.
The second funding package deal, which shall be revealed in early 2024, entails an electrical automobile that shall be inbuilt Mexico. Nestler stated the package deal would come with a big amount of cash with out giving specifics.
Volkswagen Mexico’s president says the brand new mannequin to be produced on the plant shall be launched within the subsequent 12 to fifteen months. Nestler states the EV shall be constructed for Mexico, the US, and Canada.
The information comes after Tesla confirmed it was pumping the brakes at Gigafactory Mexico amid worries over the worldwide economic system. CEO Elon Musk stated in early October:
And in Mexico, we’re laying the groundwork to start building and doing all of the lengthy lead objects, however I believe we need to simply get a way for the worldwide economic system is like earlier than we go full tilt on the Mexico manufacturing unit. I’m apprehensive in regards to the excessive rate of interest setting that we’re in.
Extra not too long ago, Gigafactory Mexico stated it had all of the permits wanted to start building. It was simply ready on Tesla to present it the inexperienced gentle.
Electrek’s Take
It’s attention-grabbing to see Volkswagen transferring forward with plans to construct EVs in Mexico regardless of delays in its house market.
Volkswagen halted manufacturing of electrical fashions at two German crops final week. The halt impacts EVs together with the VW ID.4, ID.7, and Audi This autumn e-tron. The automaker blamed an absence of electrical motors as the reason for the manufacturing halt.
The brand new “made in Mexico” EV wouldn’t qualify for the IRA tax credit score, however it could nonetheless lower down on transport to North America considerably.
Volkswagen at present assembles the ID.4 electrical SUV at its Chattanooga, TN facility. Manufacturing started final July. Its flagship ID.7 electrical sedan will go on sale subsequent 12 months.