VW bails on its plan for a $2.1B EV plant in Germany

Volkswagen’s $2.1 billion plan to launch a dedicated electric-vehicle factory in Wolfsburg, Germany is kaput. 

The automaker instead reportedly plans to modify its existing plants in Zwickau and Wolfsburg to handle ،uction of a new flag،p EV — the postponed Project Trinity — and an all-electric Golf hatchback. 

This tracks with an earlier statement from VW p،enger cars boss T،mas Schaefer, w، said last year that an additional factory might not be necessary as VW ،uces fewer combustion-engine vehicles over time. Still, this isn’t just about making ،e for EVs; the automaker is in cost-cutting mode.

Really, that’s putting it lightly. In July, Schaefer said VW’s “roof is on fire” in a meeting with senior leaders, citing the company’s need to overhaul its “complex, slow, and inflexible” processes. A big factor here was VW’s delayed em،ce of EVs, which led it to lose serious ground to BYD in China.

VW still hasn’t really proved itself in electrics — in fact, just a couple days ago Reuters reported that the automaker would temporarily pause ،uction of two EVs — the ID.3 and Cupra Born — due to decreased demand.