Volkswagen's $482 Million Wolfsburg Investment Focuses On EVs

Volkswagen Group announced on Wednesday that the company will invest $482 million into the development of VW Group's main factory in Wolfsburg, Germany.

This initial investment is primarily earmarked for preparing the factory for the new ID.3 compact electric cars in preparation for the future Trinity vehicle project. This requires not only modifications to the existing factory but new training for the current workforce.

"Volkswagen stands for electromobility for everyone. And Wolfsburg will be part of this success story," explained Volkswagen brand CEO Thomas Schäfer to Wolfsburg employees. "Here at our main plant alone, we will be investing some €460 million by the beginning of 2025, getting the factory ready for the MEB."

This update to the Wolfsburg factory has been a concern for the Works Council due to a decreased output that has spiraled downward since 2015 and was further exacerbated by the Covid-19 pandemic. The factory, which has approximately 60,000 workers currently producing combustion-based models, has been a primary issue.

The Trinity model is nearly two years behind schedule, and suppliers have caused "flat-out chaos" by canceling major orders with only one night's notice. These cancellations are one of the reasons why production at the Wolfsburg factory has decreased and upgrades were required.

Works Council Chairwoman Daniela Cavallo said that "Wolfsburg stands for the future. And the Works Council has a clear ambition for the Wolfsburg site: state-of-the-art production, the best workforce, and the biggest pioneering spirit."

She went on to reassure workers by saying that "Wolfsburg will remain the brand's – and the Group's – powerhouse in the coming years with the transformation to electric production, an additional all-electric model by 2026, along with Trinity and the SSP." Cavallo added that "we will develop the detailed timetable together. That is how we are creating secure jobs."