Volkswagen Group is trying to make production of their vehicles easier and closer to the people who buy them. To do this, they are building factories in North America.
They recently announced plans to build a battery plant in Canada and one more factory in South Carolina to build electric cars for their new ‘Scout’ brand.
VW Group’s CEO, Oliver Blume said that they are taking steps to quickly finish their plan for North America by making decisions about factories in Canada and a Scout site in South Carolina. They chose Canada because of access to materials they need and clean energy sources.
Volkswagen Group has announced that The PowerCo battery company will be building a new plant in St. Thomas, Ontario. It’s predicted to start working by 2027 and the batteries produced here will feature a “common design” that 80% of Volkswagen models will use. Best part? This battery design could lower the costs by 50%, which is far less than it currently is.
PowerCo is opening its first battery factory outside of Europe in Canada. Last year, it announced six more factories in Europe—some with Northvolt, a competing battery company.
VW Group wants to do more in North America. The company announced that they will update factories located in Puebla and Silao, Mexico, so they can produce electric cars as well as electric car parts during the middle years of this decade. Plus, VW’s software organization “Cariad” is creating centers in Seattle and Silicon Valley starting from early 2023.