Volkswagen is shifting forward with plans to construct electrical automobiles 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 automobiles in Mexico
Talking with Forbes Mexico, Nestler stated the aim shouldn’t be solely to supply EVs, however to construct them extra sustainably.
Volkswagen will make investments $750M, the primary of two packages, to remodel its facility in Puebla. The VW plant in Puebla is the most important auto manufacturing facility in Mexico and one of many largest inside its community.
The plant at the moment produces fashions together with the Jetta, Beetle, Golf, and Tiguan Lengthy Model.
Nestler defined within the interview that Volkswagen plans to supply electrical automobiles in Mexico. He added, “However first we’ve got to begin with a change of the business.”
VW Mexico’s chief stated the automaker is upgrading its facility to incorporate “state-of-the-art know-how.” Based on Nestler, “giant investments” can be revamped the following one to 3 years to develop new electrical fashions.
The second funding package deal, which can be revealed in early 2024, entails an electrical automobile that can be inbuilt Mexico. Nestler stated the package deal would come with a major amount of cash with out giving specifics.
Volkswagen Mexico’s president says the brand new mannequin to be produced on the plant can be launched within the subsequent 12 to fifteen months. Nestler states the EV can 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 gadgets, 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 facility. I’m anxious in regards to the excessive rate of interest atmosphere that we’re in.
Extra just lately, Gigafactory Mexico stated it had all of the permits wanted to start building. It was simply ready on Tesla to offer it the inexperienced mild.
Electrek’s Take
It’s fascinating to see Volkswagen shifting 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 fall e-tron. The automaker blamed a scarcity 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 the moment 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.
