Volkswagen plans new site in Germany to counter Tesla’s gigafactory By Reuters

FRANKFURT (Reuters) -Volkswagen is planning to build a new state-of-the-art car factory close to its headquarters in Wolfsburg, Germany, hoping to raise its game as the opening of Tesla (NASDAQ:)’s gigafactory near Berlin draws closer.

The plant, which still requires approval by Volkswagen (DE:)’s supervisory board over the coming weeks, is part of the group’s Trinity project, under which the carmaker wants to build a flagship electric sedan in Wolfsburg from 2026.

Volkswagen, which did not provide a cost estimate for the factory, said it aimed for a production time of 10 hours per vehicle for the Trinity model, similar to how long it will take Tesla to assemble the Model 3 at its planned site in Gruenheide.

Constructing an all-new plant is an alternative to adapting the existing Wolfsburg plant to produce the Trinity model, which VW says limits the possibilities for more radical changes to the manufacturing process.

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

“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.”