Volkswagen’s Spanish division SEAT will start making electric vehicles and batteries. The move comes after initial reservations for Spain over the scale of the government subsidy for the venture’s strategic importance. The SEAT-led project will be attended by 60 other companies associated with Volkswagen.
Image Credits – Automotive News
An investment of 10 billion euros ($10.06 billion) is expected. The government will receive 397.4 million euros out of a total of 877 million euros in the PERTE electric vehicle financing program last month using EU pandemic recovery funds. Although SEAT took the largest share, he initially said the money was not enough. It is not yet known if the funding has been raised. Local media reported that regional authorities have offered some additional grants and loans. “The acceptance of PERTE by the Volkswagen Group and SEAT is a sign of our strong commitment to Spain and Europe,” SEAT CEO Wayne Griffiths said in a video, calling it “a historic day for all of us”.
The Volkswagen Group, which distributes electricity to the Martorell and Pamplona plants, said that Spain will have its first battery plant in Sagunto, adding that the project will create jobs for thousands of citizens. Spain is Europe’s second largest car producer behind Germany and plans to use EU pandemic relief funds to bolster the industry.
Production
The Spanish government has identified electric vehicles as a priority to create quality blue-collar jobs and meet Europe’s 2035 ban on the sale of new petrol and diesel cars. Plants in Martorell and Pamplona and to build a battery factory in Sagunto as part of our electric car initiative,” Sánchez wrote on Twitter in Spanish. “We are leading the energy transition by re-industrializing our country.” He said the money from the recovery plan would transform the country’s car manufacturing industry into the second largest in Europe.
SEAT is a Spanish car manufacturer that sells its vehicles under the SEAT and Cupra brands. Founded on May 9, 1950, the Spanish government-owned Instituto Nacional de Industri (INI), with a majority stake, is a partnership of Spanish private banks and FIAT. It quickly became the largest car supplier in Spain. In the year In 1986, after 36 years of being officially listed as an independent automaker, the Spanish government sold SEAT as a wholly owned subsidiary to the Volkswagen Group.
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