Volkswagen is transferring 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 purpose shouldn’t be solely to provide 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 unit in Mexico and one of many greatest 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 provide electrical automobiles in Mexico. He added, “However first we’ve got 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 keeping with Nestler, “giant investments” shall be remodeled the following one to a few years to develop new electrical fashions.
The second funding bundle, which shall be revealed in early 2024, entails an electrical car that shall be inbuilt Mexico. Nestler stated the bundle would come with a big sum of money 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 development and doing all of the lengthy lead gadgets, however I feel 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 frightened in regards to the excessive rate of interest atmosphere that we’re in.
Extra not too long ago, Gigafactory Mexico stated it had all of the permits wanted to start development. It was simply ready on Tesla to offer 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 dwelling market.
Volkswagen halted manufacturing of electrical fashions at two German vegetation 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 minimize down on delivery 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 yr.