VW opens second EV factory in Germany to up the production of ID.4

22 May 2022

VW’s Emden plant is not a new factory, but it has now been transformed from manufacturing Passat and Arteon models to manufacture only all-electric cars with first models of ID.4 already leaving the production line. The transformation cost €1 billion and Emden factory joined the other 3 sites already manufacturing the ID.4 - Zwickau in Germany and Foshan and Anting in China.

VW is readying another facility in Chattanooga in the US where ID.4 will be made in the fall of this year. The 5 factories when fully operational will be able to manufacture 1.2 million vehicles based on the MEB platform.

Emden is a first high-tech facility in the Lower Saxony area of Germany and VW plans to invest €21 billion in this area within the next 4 years with a focus on cost-effective manufacturing. The company employs 130,000 people in Lower Saxony alone and it wants to make it a center for electric mobility.

To give you an idea of the scale of EV production let me remind you that ID. Buzz will be made in Hanover at a dedicated commercial vehicle factory, the ID.3 will be made in Wolfsburg form next year and the TRINITY (the new entry EV from VW, Skoda and Cupra) will join the ID.4 on production lines in Emden.

The VW Group is expanding its current operations in Braunschweig, Salzgitter and Kassel where MEB platform components are made - battery systems and electric motors with all their components. The Saltzgitter has been designated as a European battery hub. Tremendous progress at an unprecedented speed.

Once the new factory in Emden is at its full capacity, VW expects to see 800 ID.4s leaving the production line every day. The total area of the factory is 125,000 square meters and it was desperately needed for VW to try and meet the demand for the ID.4 - currently there are more than 73,000 customers waiting for delivery of the car. With the 4 factories at full speed and Chattanooga joining them soon this backlog will be addressed but we need to remember that demand for EVs is only growing and the only company that had a true foresight of the situation was Tesla.

Nonetheless, other legacy automakers are catching up fast with huge investments in tow, but one thing that everyone is struggling with is the efficiency of Tesla’s operations. VW admitted not long ago to being surprised by how fast Tesla was at adapting and scaling up. Now the gap is closing between the competitors and we should see big change in the coming years.

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