Volkswagen is pushing ahead with plans to manufacture electric vehicles in Mexico. Volkswagen Mexico President and CEO Holger Nestler has announced that the company will offer two investment packages aimed at accelerating electric vehicle (EV) production.
Volkswagen announces plans to manufacture electric vehicles in Mexico.
In an interview with Forbes Mexico, Nestle underscored that its goal extends beyond simply providing electric vehicles, instead striving to manufacture them in a more environmentally conscious manner.
Volkswagen is investing $750 million as part of a two-packaged initiative to revamp its facility in Puebla. The Volkswagen (VW) plant in Puebla is Mexico’s leading automotive manufacturing facility, ranking among the top ones globally.
The company currently manufactures fashion items alongside its popular models: Jetta, Beetle, Golf, and Tiguan Long Model.
Volkswagen has announced its intention to supply electric vehicles in Mexico, as revealed during an interview with Nestle. Before that, we need to undergo a fundamental transformation of the business itself.
Volkswagen’s Mexican subsidiary has announced a significant upgrade of its manufacturing facility, incorporating cutting-edge technology and expertise. According to industry reports, the company plans to invest heavily in the next two to three years, paving the way for the development of new electric vehicle models.
The second funding bundle, scheduled for early 2024, comprises a pioneering electric vehicle that will feature local production capabilities in Mexico. Nestler announced that the package would accompany a substantial financial incentive without providing further details.
The president of Volkswagen Mexico announces that a brand-new model will roll off the assembly lines within the next 12 to 15 months. Nestler asserts that an electric vehicle can be designed to meet regulatory requirements in Mexico, the United States, and Canada.
Tesla has confirmed a slowdown in production at its Gigafactory Mexico facility due to growing concerns about the global economic climate. Elon Musk, CEO of a renowned conglomerate, announced in late September that
In Mexico, we’re establishing a solid foundation for our manufacturing venture by completing preparatory work and overcoming initial hurdles, yet I firmly believe that we must first understand the global economy’s current landscape before investing heavily in our Mexican facility. I am increasingly concerned about the alarmingly high interest rates prevailing today.
Recently, Tesla’s Gigafactory Mexico announced that it has secured all necessary permits to commence construction. Was Tesla prepared to give the inexperienced pilot a green light?
Electrek’s Take
Despite lingering uncertainty in its home market, Volkswagen is forging ahead with plans to manufacture electric vehicles in Mexico, a strategic move that underscores the automaker’s commitment to electrification and global expansion.
Volkswagen suspended production at two German plants last week due to a shortage of electric vehicle components. The production halt affects several electric vehicle models, including the Volkswagen ID.4, ID.7, and Audi’s e-tron, all of which are scheduled for release this fall. The company cited a shortage of essential components, specifically electrical motors, as the cause of the production pause.
While the newly designed “made in Mexico” electric vehicle would not meet the requirements for the IRS tax credit, it could still optimize its logistics to significantly reduce shipping costs to North America.
Volkswagen currently manufactures the ID.4 electric SUV at its Chattanooga, Tennessee plant. Manufacturing started final July. Its upcoming flagship ID.7 electric sedan will hit the market next year.
