Volkswagen's $2 billion Trinity electric vehicle plant in doubt

  • Reuters
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Volkswagen's $2 billion Trinity electric vehicle plant in doubt
Credit: © Reuters.

By Jan Schwartz

HAMBURG (Reuters) - Volkswagen (ETR: VOWG_p ) Chief Executive Oliver Blume is reviewing plans to build its planned Trinity electric vehicles (EV) factory, a source told Reuters on Thursday after Manager Magazine reported he wanted to ditch the proposals.

The management still plans to bring the vehicles to market with new SSP software, the source said, adding the question was whether a new factory was needed in Wolfsburg or the assembly line at Wolfsburg's main plant could produce them.

Volkswagen, the world's second-biggest carmaker, had planned to officially start production of its flagship electric sedan at the new factory in 2026.

Manager Magazine reported that Blume wanted to delay this until 2030.

Like other German carmakers, Volkswagen faces pressure to ramp up EV production, especially since Tesla (NASDAQ: TSLA ) launched its gigafactory near Berlin.

The SSP model platform planned for the whole group will probably no longer be launched with the Trinity plant as originally planned, the magazine reported.

The source, speaking on condition of anonymity because they were not authorised to speak to the press, told Reuters Blume had written to workers making clear all projects and investments were under review.

"We are taking the opportunity to look at all projects and investments and check their viability," the letter said.

It was too early for concrete statements as Volkswagen wants to decide on its revised investment plans in February, the source told Reuters.

© Reuters. FILE PHOTO: A technician attaches a Volkswagen logo to a car, at the production line for electric car models of the Volkswagen Group, in Zwickau, Germany, April 26, 2022. REUTERS/Matthias Rietschel

Volkwagen's supervisory board in March approved 2 billion euros ($2.07 billion) for the new Trinity factory, with construction due to start in spring 2023.

($1 = 0.9648 euros)

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