Volkswagen announces to convert two plants in Germany for electric vehicle production. These are production sites in Emden and Hanover, Germany. The first electric cars should roll off the production line at the plants in 2022.
The carmaker previously converted its plant in Zwickau, Germany, for electric vehicle production. With the plants in Emden and Hanover, Volkswagen is now further increasing its production capacity in this field. Volkswagen staff were informed of the decision on Wednesday 14 November. "We are moving at full speed towards the production of electric vehicles. Emden and Hanover will become model plants in Germany. Together with Zwickau, they will form the largest electric vehicle production network in Europe," said Gunnar Kilian, HR board member at Volskwagen.
Production to start in 2022
Electric vehicles are expected to be produced in Emden and Hanover from 2022. Among other things, the Hanover plant will focus on producing electric models based on the ID. BUZZ, as well as conventionally powered vehicles. ID. BUZZ is an electric concept vehicle presented by Volkswagen in 2017 in Detroit. The van has a range of 330 to 550 kilometres depending on the battery pack chosen. There are solar panels on the roof of the vehicle that can generate enough energy daily to increase the range by 15 kilometres.
"In this way, we are securing the future of the Hanover plant and jobs. We are making Volkswagen commercial vehicles suitable for the transformation underway in our industry," explained Thomas Sedran, chairman of the board at Volkswagen Commercial Vehicles. Earlier, Volkswagen announced its intention to have 16 electric vehicle plants by the end of 2022. The carmaker claims this will prepare it to produce 50 million electrically powered vehicles.
Job guarantee
Volkswagen gives staff at the Emden and Hanover plants a job guarantee until 2028. Over time, however, the switch to electric vehicles is going to cost jobs. The carmaker wants to limit the impact of this by using, among other things, a programme that allows employees to retire earlier. Workers on temporary contracts will be offered permanent contracts at Porsche plants in Zuffenhausen, Ludwigsburg and Sachsenheim, and the Volkswagen plant in Kassel.
Volkswagen recently announced its intention to bet heavily on electric driving in China. The company plans to launch up to 30 electric and plug-in hybrid models on the Chinese market in the next two years. Half of these models are expected to be produced in China. To strengthen the company's presence in the Chinese market, Volkswagen will invest 4 billion euros together with partners.
€1 billion for local battery production
Besides the news from Volkswagen, there is also other news from Germany in the field of electric vehicles. For instance, German Economy Minister Peter Altmaier has announced that he will set aside around 1 billion euros to support local production of batteries for electric vehicles. Altamaier told Reuters he aims for 30% of all batteries for electric vehicles to be produced in Europe by 2030. To make this possible, Altmaier is consulting with his counterparts in France, Poland and Austria.
Battery production in Germany is expected to be placed under a consortium. Volkswagen has already expressed its interest in joining this consortium, while possibly the German arm of carmaker Ford and chemical group BASF may also want to join.
Author: Wouter Hoeffnagel
Source: Volkswagen (pictured)
Source: Reuters
