EV Market Slump Leads Volkswagen To Stall Eastern Europe Battery Plant Decision: Report

Volkswagen AG VWAGY is reportedly hitting the brakes on its plans to select a new location for its fourth gigafactory dedicated to electric vehicle (EV) battery production.

The decision comes amidst a slower-than-anticipated uptake of EVs in the European market, reported Reuters, citing the company's Chairman, Oliver Blume.

After a prolonged deliberation over potential sites within Eastern Europe, the automotive giant has postponed the decision-making process.

The report noted Volkswagen has already selected sites for battery cell production in Salzgitter (Germany), Valencia (Spain), and St. Thomas (Canada).

The Czech Republic, one of the contenders for the new factory, has reportedly expressed its inability to wait further, and Czech officials are opening up their proposed location to other investors.

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Blume points to the sluggish growth in the European battery electric vehicle (BEV) market as the primary reason for deferring the location decision for the new site.

Volkswagen said it remained committed to e-mobility at Skoda Auto, which is the Czech Republic's biggest exporter, the report noted.

Volkswagen's order intake for EVs were down to 150,000 in Europe from 300,000 last year, as per the report.

Price Action: VWAGY shares are trading higher by 0.61% at $11.57 on the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.