Photo by Linas Butkaus (VŽ).
Having estimated that it can receive 10 billion Euro U.S. incentives have Volkswagen temporarily shelving plans to build a battery plant in Eastern Europe in favor of a similar plant in North America.
According to the Financial Times, this is the latest 369 billion dollar investment by Joe Biden, the president of the United States. The result of a package of USD subsidies and tax breaks for green technologies that is luring European companies to the US.
VŽ reminds that last year Washington passed the Inflation Reduction Act (IRA), which provides benefits for US electric car buyers if they “buy an American product”. This has also increased the interest of European companies in the US market, as it allows them to receive various subsidies.
As a result, according to an FT source familiar with Volkswagen’s intentions, “plans in North America have moved forward faster than expected.”
Volkswagen said it has not yet made any decisions on the locations of its plants in North America or Europe and is committed to its plan to build more battery plants in the Old Continent.
“But we need the right general conditions for that.” Therefore, we are waiting and watching what the so-called EU green deal will bring,” explained the company.
Arno Antlic, Volkswagen’s chief financial officer, said last week that the automaker “would have built a battery plant in North America anyway,” but that the new subsidies accelerated his plans.
“The IRA gives us momentum, so we have the opportunity to expand our global footprint in the US even faster,” he said.
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