Volkswagen is transferring forward with plans to construct electrical autos 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 autos in Mexico
Talking with Forbes Mexico, Nestler mentioned the objective just isn’t solely to supply EVs, however to construct them extra sustainably.
Volkswagen will make investments $750M, the primary of two packages, to rework its facility in Puebla. The VW plant in Puebla is the most important auto manufacturing facility 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 supply electrical autos in Mexico. He added, “However first now we have to begin with a metamorphosis of the business.”
VW Mexico’s chief mentioned the automaker is upgrading its facility to incorporate “state-of-the-art know-how.” In response to Nestler, “massive investments” might be remodeled the following one to a few years to develop new electrical fashions.
The second funding package deal, which might be revealed in early 2024, includes an electrical automobile that might be in-built Mexico. Nestler mentioned the package deal 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 might be launched within the subsequent 12 to fifteen months. Nestler states the EV might 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 financial system. CEO Elon Musk mentioned 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 wish to simply get a way for the worldwide financial system is like earlier than we go full tilt on the Mexico manufacturing facility. I’m nervous concerning the excessive rate of interest setting that we’re in.
Extra just lately, Gigafactory Mexico mentioned it had all of the permits wanted to start building. It was simply ready on Tesla to offer it the inexperienced gentle.
Electrek’s Take
It’s fascinating to see Volkswagen transferring 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 autumn 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 might 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.
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