Volkswagen is making headlines this morning with new plans for electric vehicle production at a new EV plant.
A Reuters reporter writes the company plans to close an existing plan at Wolfsburg as part of a pivot toward electric vehicles.
This is all in aid of Volkswagen’s Trinity project to build an electric sedan by 2026.
“Trinity is a sort of crystallization point for our ACCELERATE strategy, a lighthouse project, our software dream car,” said CEO Ralf Brandstätter in a press statement. “The newly developed vehicle architecture will set standards in terms of range, charging speed (“charging as fast as refueling”) and digitalization.”
As for production at Wolfsburg, it’s down almost half from what was expected, with 400,000 cars produced last year against estimates of 330,000 more.
Nonetheless, some would like to keep the plant open.
“We are fighting for Trinity production right here in Wolfsburg, which means either on the factory site or in the direct vicinity of the main plant,” works council head Daniela Cavallo said in a statement.
All of this comes as makers start to gear up for better chip production to deal with an existing scarcity.
Samsung, for example, announced today that it plans to put $920 million into its Vietnam plant.
Volkswagen, for its part, expects the scarcity to ease by 2023.
“The supply situation is getting better, but even in 2022 we will not be able to build all the cars we could sell. But we see opportunities for further production increases, especially in the second half of the year,” said Chief Executive Herbert Diess recently, evaluating the ongoing shortage.
It’s a big question for auto makers that need to boost production to survive. We will continue to bring updated on the global microprocesser shortage, as well as the massive sea change toward electric vehicles like the emerging Trinity design.
