Volkswagen AG‘s bold attempt to dethrone Tesla Inc. as the electric vehicle industry leader is encountering difficulties. CEO Oliver Blume is carefully reviewing the construction plans for the Trinity electric vehicle factory, as per Electrek.
VW is assessing if a Trinity EV plant is necessary
It appears that the world’s second-largest automaker will not proceed with its previously announced intentions to construct a new $2.2 billion manufacturing site for its Trinity EV. The planned facility is one that CEO Oliver Blume wants to get rid of as part of his plan to “clean up” the German auto group, according to Manager Magazin.
CEO Blume reportedly intends to delay planned models and platforms for a few years after taking a 1.9-billion-euro non-cash impairment charge in the self-driving firm Argo. It is also worth noting that VW still intends to produce the Trinity EV. However, the original 2026 plan could be delayed.
The matter at hand is whether a new facility is required to produce the electric vehicle. According to a source, Blume sent a letter to staff members that read as follows:
“We are taking the opportunity to look at all projects and investments and check their viability.”
VW envisions the factory as “a model for the gradual transformation of production” towards electrification, with development beginning as soon as April 2023.
Pressures from Tesla
As Volkswagen comes under increasing pressure from rivals like Tesla, it planned to speed up production at the facility. The Musk-led automaker opened its gigafactory in Brandenburg, Germany.
In retrospect, former VW CEO Herbert Diess claimed that the company needs to resemble Tesla more. The industry leader produces the Model Y in 10 hours. On the other hand, VW’s Zwickau facility requires 30 hours to assemble one car.
VW delivered 366,400 all-electric vehicles between January and September (Q1-Q3). In just Q3, Tesla sold a record-breaking 343,800 EVs.