Volkswagen works council sees Q1 decision on new Wolfsburg plant.

Volkswagen works council sees Q1 decision on new Wolfsburg plant.

BERLIN (Reuters) The works council of Volkswagen (DE: VOWG_p) said on Wednesday it hopes for a final decision on exactly where the German company will build a new electric vehicle plant in the first quarter, adding it wants it close to its existing Wolfsburg factory.

 

"We are fighting for Trinity production right here in Wolfsburg, which means either on the factory site or in the direct vicinity of the main plant," works council head Daniela Cavallo said in a statement.

 


Volkswagen said last year it plans to build a new state-of-the-art car factory close to its headquarters in Wolfsburg, Germany, hoping to raise its game as the opening of Tesla (NASDAQ: TSLA)'s gigafactory near Berlin draws closer.


The plant is part of the group's Trinity project under which the carmaker wants to build a flagship electric sedan in Wolfsburg from 2026.


However, Volkswagen Chief Executive Herbert Diess has angered labour representatives by arguing that VW's main site - which does not currently produce any electric models - was way behind Tesla in terms of efficiency and speed.


Cavallo said the new plant should be closely connected to the existing factory to maximize synergies. The works council added it expected a decision about the precise location of the new plant in the first quarter.


The works council said Volkswagen produced 330,000 fewer vehicles than originally planned at the Wolfsburg plant last year due to a lack of semiconductors, with just under 400,000 vehicles rolling off the production line.


Volkswagen said in early February that night shifts at Wolfsburg would be cut on some production lines because of the lack of chips.


"The coming months will be hard, but we will carry on being the leading plant for the whole Volkswagen Group here in Wolfsburg. This is where we set the direction for the company," Cavallo said.

Cavallo reiterated a demand for a wage bonus for employees despite the tough earnings situation.