The Volkswagen Group is suspending its plans to build a battery factory in Eastern Europe. At the same time, the Czech Republic was also among the countries under consideration. Instead, he is focusing on building a similar plant in the US, where he could get government incentives worth around ten billion euros, writes the Financial Times.
Last week, Volkswagen officials met with representatives of the European Union, to whom they announced that through the American Inflation Reduction Act and other support mechanisms, they will receive subsidies and loans from public sources worth nine to ten billion euros in the US during the life cycle of the factories.
According to one of the sources of the Financial Times, Volkswagen is now waiting to see how the European institutions will react to the American incentives. Only then will he decide on the construction of a factory for the production of batteries in Eastern Europe. “Plans in North America have progressed faster than expected, ahead of decisions in Europe,” the source said.
The Czech government also strove for the plant for approximately 120 billion crowns. Volkswagen offered to build an industrial zone, which was to be created on the grounds of the airport in Línich near Pilsen. In addition to the Czech Republic, the automobile concern also considered locating the factory in Poland, Slovakia or Hungary.
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Tags: Gigafactory Czech Republic postponed Volkswagen prefers USA
