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VW picks Wolfsburg for $2.2 billion electric vehicle plant to keep up with Tesla

BERLIN — Volkswagen Group has chosen its headquarters, the central German metropolis of Wolfsburg, as the situation for its new manufacturing facility to buld the Trinity electrical flagship sedan for the VW model.

Building is ready to start in spring 2023, VW mentioned on Friday.

VW mentioned it was investing about 2 billion euros ($2.18 billion) within the manufacturing of the automobile.

The plant will use the newest manufacturing methods and is designed to shut the expertise hole to Tesla, which on Friday received approval to start out manufacturing at its new European plant close to Berlin.

Building will begin in 2023, with automobiles rolling off the manufacturing line beginning in 2026, VW mentioned. 

The Trinity sedan might be in regards to the measurement of the midsize Passat. The automobile is aimed on the mass market and targets a variety of greater than 700 km (435 miles).

It is going to be technically prepared for Degree 4 autonomous driving and can debut VW Group’s SSP electrical “tremendous platform” that may exchange combustion-engine and full-electric platforms utilized by manufacturers together with VW, Skoda, Seat, Audi and Porsche.

VW goals for a manufacturing time of 10 hours per automobile for the Trinity mannequin, much like how lengthy it can take Tesla to construct automobiles at its new manufacturing facility in Gruenheide close to Berlin.

The secret is “fewer variants, fewer parts, extra automation, leaner manufacturing strains and new logistic ideas,” VW mentioned.

The manufacturing facility will produce about 250,000 automobiles yearly and constructing it from scratch is much less complicated than retooling current operations, VW model chief Ralf Brandstaetter informed reporters in November.

The choice so as to add a brand new facility is a part of VW Group CEO Herbert Diess’s push to choose up the tempo within the EV shift and develop into extra environment friendly.

Constructing the manufacturing facility near Wolfsburg is a nod to VW’s highly effective unions, who’ve incessantly clashed with Diess.

Reuters and Bloomberg contributed to this report

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