The new plant will be for EVs.
It will cost upwards of $2.2 billion.
Construction is set to begin next year.
Demand is already quite strong for EVs and by all accounts, it will continue to increase in the near future. In order to meet the wants of the automobile buying public and to better compete with Tesla, Volkswagen will begin construction on a new EV plant next year.
2022 Volkswagen ID.4 | Photo: Volkswagen Canada
The new facility, which represents a $2.2 billion investment, will be constructed near its current HQ in Wolfsburg, Germany. The goal is to get new VW EVs rolling off the assembly line by 2026.
VW is “strengthening and sustaining the competitiveness of the main plant and giving the workforce a robust long-term perspective,” VW brand chief Ralf Brandstaetter said in a statement following a supervisory board meeting as reported by Yahoo Finance.
Volkswagen hopes to lower production times for one vehicle to 10 hours. This considerable drop compared to current time periods would see production increase in order to take on all other automakers including the current global EV leader Tesla.
There’s no word as to which vehicles will be assembled there for now.
