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Volkswagen boosts Project Trinity budget to electrify its European production plants

From left to right: Hans Dieter Pötsch, Chairman of the Supervisory Board of Volkswagen Aktiengesellschaft, Dr. Herbert Diess, Chairman of the Board of Management of Volkswagen Aktiengesellschaft and Daniela Cavallo, Chairperson of the General and Group Works Council of Volkswagen AG.

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Volkswagen has boosted the budget of Project Trinity as it plans to electrify its production facilities across Europe. Volkswagen intends to have eight manufacturing facilities in Europe that are completely catered to the company’s transition to electric vehicles across its many brands, including Audi, Porsche, and the Volkswagen ID. family.

“The future-oriented investments, which will be primarily in e-mobility and digitalization, will account for the largest proportion of total investments of EUR 159 billion for the first time, at 56 percent or EUR 89 billion. Volkswagen expects that by 2026 one in four vehicles sold will have a battery-electric drive system,” Volkswagen wrote.

Project Trinity outlines Volkswagen’s goal to become the leader in electrification and e-mobility by 2025. The German automaker has built electric vehicles on its dedicated ID. platform since 2019 and has introduced several electric models under the umbrella of its EV-focused drivetrain and design. However, the development of more electric models is needed to reach Volkswagen’s lofty goals of overtaking market leader Tesla, which has dominated EV market share from a global standpoint for several years.

“The resolutions passed today show how resolutely we are driving forward the transformation of the Volkswagen Group,” Hans Dieter Pötsch, Chairman of the Supervisory Board of Volkswagen AG, said. “Our investments will be focused on the future of mobility in all its key aspects and on systematically implementing the Group’s strategy. Our exceedingly robust and solid financial base, enables us to finance the necessary investments on our own. We are also therefore very confident that these investment decisions will steer the Volkswagen Group to future success.”

The main focus of Project Trinity is to turn Volkswagen AG’s current production facilities into primed EV manufacturing plants. €21 billion will be spent at plants in Lower Saxony alone, “most of which will be channeled into manufacturing sites and component facilities,” VW said. The automaker plans to then move toward its Hanover, Germany, plant, where the first Artemis project will be manufactured with Audi. Bentley will also develop a new model at the Hanover site, along with the initial builds of the ID. California, the newest member of the ID. family.

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Volkswagen’s Zwickau and Wolfsburg plants will also be transitioned to fully-electric manufacturing facilities. Wolfsburg will be completely revamped to cater to full production of the ID.3 starting in 2024, “ensuring profitability with a site package.” Partial production of the ID.3 will take place at Wolfsburg prior to 2024, but only when Zwickau can provide supplies to the plant. Additionally, Salzgitter is the primary candidate for a battery production facility.

The Wolfsburg project has not been finalized, however, and more details regarding VW’s plans for the plant will be solidified when the next planning round takes place.

Volkswagen’s full press release is available here.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla rolls out most aggressive Model Y lease deal in the US yet

With the promotion in place, customers would be able to take home a Model Y at a very low cost.

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(Credit: Tesla)

Tesla has rolled out what could very well be its most aggressive promotion for Model Y leases in the United States yet. With the promotion in place, customers would be able to take home a Model Y at a very low cost.

Zero downpayment leases

The new Model Y lease promotion was initially reported on X, with industry watcher Sawyer Merritt stating that while the vehicles’ monthly payments are still similar to before, the cars can now be ordered with a $0 downpayment. 

Tesla community members noted that this promotion would cut the full payment cost of Model Y leases by several thousand dollars, though prices were still a bit better when the $7,500 federal tax credit was still in effect. Despite this, a $0 downpayment would likely be appreciated by customers, as it lowers the entry point to the Tesla ecosystem by a notable margin.

Premium freebies included

Apart from a $0 downpayment, customers of Model Y leases are also provided one free upgrade for their vehicles. These upgrades could be premium paint, such as Pearl White Multi-Coat, Deep Blue Metallic, Diamond Black, Quicksilver or Ultra Red, or 20″ Helix 2.0 Wheels. Customers could also opt for a White Interior or a Tow Hitch free of charge.

A look at Tesla’s Model Y order page shows that the promotion is available for all the Model Y Premium Rear-Wheel Drive and the Model Y Premium All-Wheel Drive. The Model Y Standard and the Model Y Performance are not eligible for the $0 downpayment or free premium upgrade promotion as of writing. 

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Tesla is looking to phase out China-made parts at US factories: report

Tesla has reportedly swapped out several China-made components already, aiming to complete the transition within the next two years.

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(Source: Tesla)

Tesla has reportedly started directing its suppliers to eliminate China-made components from vehicles built in the United States. This would make Tesla’s US-produced vehicles even more American-made.

The update was initially reported by The Wall Street Journal.

Accelerating North American sourcing

As per the WSJ report, the shift reportedly came amidst escalating tariff uncertainties between Washington and Beijing. Citing people reportedly familiar with the matter, the publication claimed that Tesla has already swapped out several China-made components, aiming to complete the transition within the next two years. The publication also claimed that Tesla has been reducing its reliance on China-based suppliers since the pandemic disrupted supply chains.

The company has quietly increased North American sourcing over the past two years as tariff concerns have intensified. If accurate, Tesla would likely end up with vehicles that are even more locally sourced than they are today. It would remain to be seen, however, if a change in suppliers for its US-made vehicles would result in price adjustments for cars like the Model 3 and Model Y.

Industry-wide reassessments

Tesla is not alone in reevaluating its dependence on China. Auto executives across the automotive industry have been in rapid-response mode amid shifting trade policies, chip supply anxiety, and concerns over rare-earth materials. Fluctuating tariffs between the United States and China during President Donald Trump’s current term have made pricing strategies quite unpredictable as well, as noted in a Reuters report. 

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General Motors this week issued a similar directive to thousands of suppliers, instructing them to remove China-origin components from their supply chains. The same is true for Stellantis, which also announced earlier this year that it was implementing several strategies to avoid tariffs that were placed by the Trump administration. 

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Tesla owners propose interesting theory about Apple CarPlay and EV tax credit

“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.

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Credit: Tesla Raj/YouTube

Tesla is reportedly bracing for the integration of Apple’s well-known iOS automotive platform, CarPlay, into its vehicles after the company had avoided it for years.

However, now that it’s here, owners are more than clear that they do not want it, and they have their theories about why it’s on its way. Some believe it might have to do with the EV tax credit, or rather, the loss of it.

Owners are more interested in why Tesla is doing this now, especially considering that so many have been outspoken about the fact that they would not use it in favor of the company’s user interface (UI), which is extremely well done.

After Bloomberg reported that Tesla was working on Apple CarPlay integration, the reactions immediately started pouring in. From my perspective, having used both Apple CarPlay in two previous vehicles and going to Tesla’s in-house UI in my Model Y, both platforms definitely have their advantages.

However, Tesla’s UI just works with its vehicles, as it is intuitive and well-engineered for its cars specifically. Apple CarPlay was always good, but it was buggy at times, which could be attributed to the vehicle and not the software, and not as user-friendly, but that is subjective.

Nevertheless, upon the release of Bloomberg’s report, people immediately challenged the need for it:

Some fans proposed an interesting point: What if Tesla is using CarPlay as a counter to losing the $7,500 EV tax credit? Perhaps it is an interesting way to attract customers who have not owned a Tesla before but are more interested in having a vehicle equipped with CarPlay?

“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.

Tesla has made a handful of moves to attract people to its cars after losing the tax credit. This could be a small but potentially mighty strategy that will pull some carbuyers to Tesla, especially now that the Apple CarPlay box is checked.

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