communication Volkswagen company Her plan to add electric car factory In Germany to keep up Tesla Corporationwhich is set to operate its plant near Berlin in the coming weeks.
Volkswagen said its new plant, estimated to cost about 2 billion euros ($2.2 billion), will be built near the world’s largest car factory in Wolfsburg, following Tesla’s final approvals.
The site, which will make a new model codenamed “Trinity”, is scheduled to begin construction in 2023 with cars rolling off the production line from 2026, according to “Bloomberg” and seen by “Al Arabiya.net”.
Head of the Volkswagen brand, Ralf Brandstätter, said that the company is working to enhance and sustain the competitiveness of the main plant and give the workforce a strong long-term perspective, according to the Al Arabiya website.
The decision to add an entirely new facility is part of CEO Herbert Diess’ efforts to increase the pace and efficiency of the electric vehicle transition.
The building of the factory near Wolfsburg is also a nod to the powerful Volkswagen trade unions, which have frequently clashed with Dies.
Tensions came to a head late last year after the chief executive floated plans to cut jobs, leading to a compromise to add the plant as well as a pledge to spend 800 million euros on a technology campus.
The new plant targets a production time of 10 hours per vehicle, which is much shorter than it currently takes to assemble a vehicle at other sites.
To gain momentum and fund the transition to battery-powered and self-driving models, Volkswagen last month took its boldest strategic move yet when it announced its intention to separate Porsche, its most profitable asset.
A potential initial public offering could value the iconic sports car brand as high as 85 billion euros, according to Bloomberg Intelligence analysts.