Volkswagen Makes New Investment in Wolfsburg Factory to Develop EV ID.3

Volkswagen will produce ID 3 at Wolfsburg. (photo: wikipedia)

JAKARTA - Volkswagen will invest 460 million euros (IDR 7.5 trillion) in early 2025 in their factory in Wolfsburg. According to the head of the VW brand, Thomas Schaefer on Wednesday, December 7, most of the funds will be spent on the production of the electric model ID.3.

Once full production of the compact car is underway, which is expected in 2025, additional full-electric models in the SUV segment will be produced in Wolfsburg on the MEB platform, an all-electric platform used since 2019.

According to VW, the electric drive kit, which incorporates vehicle structure and design, is now being adapted into a new version, which will be called MEB+ and will enable faster charging times and longer ranges.

Updating a production site in Wolfsburg, which employs around 60,000 workers who manufacture models including the Golf, Tiguan, and Touran, to make electric vehicles has been high on the workers' council's agenda amid fears the plant could lose relevance in the shift to electric mobility.

Output from the flagship plant has been in decline since 2015 when it produced around 800.000 vehicles, falling precipitously since the start of the COVID 19 pandemic to under 400.000 annually.

Schaefer said on Tuesday, December 6 that the automaker was still facing "chaos" on the supply side as suppliers canceled large orders with just one night's notice.

VW will decide in February whether to manufacture the new Trinity electric sedan at its main Wolfsburg plant or build a new factory for a nearby model.

"The new SUV model will build on VW's existing electric fleet," Schaefer said last Wednesday as quoted by Reuters.

"This is the world's largest vehicle segment, which also includes our beloved Tiguan. This new model will add to our best-selling ID.4 and ID.5 models and expand our market position," he said.

The deadline for production of the ID.3 is on track, with part production in 2023 and full production expected in 2024.