Europe’s largest automaker, Volkswagen, is delaying plans for a fourth EV battery manufacturing unit for now. CEO Oliver Blume mentioned the choice was primarily based on market situations in Europe.
Volkswagen pushes again fourth EV battery plant plans
The Volkswagen Group introduced plans to open six gigafactories by the top 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 benefit from IRA incentives.
The corporate has been trying to find 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 determine a plant, officers mentioned they might not wait any longer and would provide the location to others. The information comes after Blume met with Czech officers this week, in accordance with Automotive Information.
Blume defined that “there may be in the interim no enterprise rationale for deciding on additional websites.” VW CEO mentioned the choice was “primarily based on market situations, together with the sluggish ramp up of the BEV market in Europe.”
Volkswagen is already in the course of constructing three services. Blume mentioned the three vegetation have as much as 200 GWh manufacturing capability yearly.
The information comes after the corporate’s CFO, Arno Antlitz, mentioned EV orders have 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 worldwide gross sales. Its second largest, China, can also be in danger. Antlitz defined the automaker may 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 mentioned it might push again its 600,000 EV run charge objective 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 reducing its EV gross sales forecast for the fiscal 12 months by almost 40%. The Japanese automaker mentioned the transfer was because of the “intensifying worth battle” in China.
Regardless of this, Toyota surprisingly invested a further $8 billion into its North Carolina EV battery plant, bringing the whole to roughly $13.9 billion.
Automakers investing now will see the advantages as EV adoption is just anticipated to proceed climbing from right here on out. These delaying plans now will fall additional behind as leaders like Tesla and BYD quickly achieve market share globally.
Volkswagen cited “sluggish” EV gross sales in Europe, however Tesla’s Mannequin Y was the best-selling passenger automobile (fuel 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 folks need to purchase, offering worth to prospects. In the meantime, some consumers will not be 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 attraction.
