Volkswagen dreamed of being the world leader in electric cars, but that dream is turning into a nightmare. Although sales grow every year, they do not do so as quickly as they expected. The estimates are very far from reality and nothing seems to indicate that the situation will improve in the short or medium term. Despite this, the Germans are not throwing in the towel and are already looking for new options to increase their production. According to Holger Nestler, president and CEO of Volkswagen in Mexico, the brand plans to manufacture electric vehicles in the country.
It’s no secret, Volkswagen is not doing well with its electric cars. The profitability of the range has fallen to alarming levels, three points less than expected. In Germany, they are finalizing preparations for a plan that will try to save more than 10 billion euros in five years, but that does not mean that investment will stop. To advance it is necessary to spend and that is what is intended to be done in Mexico, as Nestler himself has declared to Forbes magazine.
Two phases aiming to renovate the factory and produce a 100% electric model
The estimated expense will be 750 million dollars and the plan consists of two phases. The first of them consists of transforming the Puebla facilities. This Volkswagen factory is considered the largest vehicle production plant in the country and one of the largest in the brand’s extensive network. Models such as the Jetta, Beetle, Golf, and Tiguan Allspace are currently produced there. Much of the investment will be used to improve and update the lines, as well as the opening and renovation of annex spaces for the assembly of different electrical components, including batteries.
The second investment package will be announced early next year, but we already know that it directly involves an electric car that will be produced in Mexico. At the moment it has not been confirmed which model that will be, although all eyes point to the new Volkswagen ID.7 . It must be remembered that, since the summer of last year, the Volkswagen ID.4 has been the company’s first electric model to be manufactured outside of Europe. The Chattanooga plant, in the state of Tennessee, is responsible for assembling it. More models could be added to that exclusive list if, finally, Volkswagen finds a way to exploit its electric range.
Despite the good news for Mexico, Volkswagen’s situation is at least compromised. In recent weeks, if not months, they have had serious problems moving forward with the production of electric vehicles in their different plants. Recently, the Zwickau and Emden factories have had to stop activity for several days due to a lack of components, specifically engines. Volume has been reduced due to a lack of orders and Volkswagen blames Europe. The Germans will also not continue with their network of battery factories. The last one to rise will be Sagunto, in Valencia, three others are pending that have delayed their opening date until further notice.
