Volkswagen plans new EV model and factory to rival Tesla

Volkswagen plans to build a new factory close to its headquarters in Wolfsburg, Germany, where it would build a new flagship electric sedan starting from 2026 that would include level 4 autonomy..

As reported by Reuters, the new factory would be part of the company’s Trinity project and would seek to match Tesla with a 10-hour production time per vehicle. It says it is unable to make such radical changes to the manufacturing process from existing factories.

“That’s why we’re planning greenfield construction: efficient and without limitations by existing structures,” Volkswagen brand CEO Ralf Brandstaetter said in a statement.

“That way we are gaining time and space to gradually modernise the main factory in a far-reaching way and raise production there, too, to a new level.”.

Reuters also reported on Tuesday that CEO Herbert Diess told staff in an internal video memo that Volkswagen has no plans to cut 30,000 jobs, despite reported comments last month that those jobs were at risk if it failed to make the transition to EVs.

“The primary focus is not on job reduction, it’s about remaining competitive in the new world, with new capabilities,” Diess said in the video seen by Reuters.

In another effort to stay competitive with Tesla, Volkswagen’s Trinity model would also aim for a level 4 autonomous standard.