VW is apparently planning a new plant in Canada – to save taxes
Volkswagen wants to build a new plant in North America. So far, however, no exact location was known. A letter of intent with the Canadian government now points to Canada. There are also tax reasons for this.
At the moment it looks as if the mobility of the future will be fully electric. But that brings with it some challenges. On the one hand, there is enormous demand on the world market. On the other hand, the scarcity of raw materials for battery production is a problem.
In order to increase production capacities, Volkswagen is planning a new plant in North America. The latest developments point to Canada as a location. Because the German automobile manufacturer recently a letter of intent with the Canadian government signed.
Volkswagen wants to benefit from tax breaks
The background is primarily economic interests. Because since measures to reduce inflation have taken effect in the USA, the regulatory hurdles for tax breaks have also become stricter. Manufacturers must therefore produce their electric vehicles in North America or specify an American trading partner.
The battery components must inevitably come from North America. With a location in Canada, VW could aim for relief in its own balance sheet. That, in turn, could happen through battery subsidiary PowerCo.
Because the VW subsidiary procures raw materials such as nickel, cobalt and lithium and produces the cathodes for electric car batteries. Not surprisingly, the focus is on North America.
By 2030: VW wants to build six battery factories in Europe
VW is thus consistently pushing ahead with its strategy. The company also plans to build six battery factories in Europe by 2030. The locations known so far are in Salzgitter (Germany), Skellefteå (Sweden), Valencia (Spain) and Eastern Europe (still unknown).
The factories should in turn achieve a production capacity of up to 240 gigawatt hours per year. And that also seems necessary. Because with a view to the current delivery times, some people might think twice about purchasing an electric vehicle.
Volkswagen, in turn, states that electric cars for Europe and the USA are sold out for this year. The announcement dates back to May 2022, so it will be some time before the market can pick up actual demand again.
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