Skip to main content

VW postponed the battery plant in Europe.

 

VW logo
Volk­swa­gen is put­ting on hold a planned bat­tery plant in east­ern Europe and pri­or­it­ising a sim­ilar facil­ity in North Amer­ica after estim­at­ing that it could receive €10bn in US incent­ives. Europe’s largest car­maker told EU offi­cials last week that it expec­ted to reap €9bn-€10bn in sub­sidies and loans from the US pres­id­ent’s Infla­tion Reduc­tion Act and other US schemes over the site’s life­time, say people at the meet­ing. VW was «wait­ing» to see how the EU would respond to Wash­ing­ton’s incent­ives before press­ing ahead with a plan to build a plant in east­ern Europe, said one per­son with dir­ect know­ledge of the decision mak­ing at VW. «Plans in North Amer­ica have moved for­ward faster than expec­ted and over­taken decision­mak­ing in Europe,» the per­son said.

« When we put the fig­ures together, the con­di­tions they offer are much more inter­est­ing than the con­di­tions they offer in Europe». VW said no decisions had been made on the loc­a­tions of its plants in North Amer­ica or Europe, and it was com­mit­ted to its plan to build more cell factor­ies in Europe. VW is mak­ing «much faster pro­gress» with bat­tery fact­ory plans in North Amer­ica com­pared with Europe, Thomas Schmall, head of VW’s com­pon­ents unit, wrote on LinkedIn after attend­ing the meet­ing in Brus­sels. Europe was at risk of los­ing out on «bil­lions of invest­ments that will be decided in the com­ing months and years», he added.

www.sba.tax

Labels:

Comments

Post a Comment

Cloud Bookkeeping

US FED rate rise.

  The US Federal Reserve officials have indicated that they plan to resume increasing interest rates to control inflation in the world's biggest economy. During the June meeting, the Federal Open Market Committee reached a consensus to keep interest rates stable for the time being to evaluate whether further tightening of policy would be necessary. However, the majority of the committee anticipates that additional rate increases will be required in the future. The minutes of the meeting have recently been made public. According to the minutes, most participants believed maintaining the federal funds rate at 5 to 5.25 per cent was appropriate or acceptable, despite some individuals wanting to raise the acceleration due to slow progress in cooling inflation. Although Fed forecasts predicted a mild recession starting later in the year, policymakers faced challenges in interpreting data that showed a tight job market and only slight improvements in inflation. Additionally, officials gr...
Post a Comment
Read more

EU business slide.

  S&P Global’s flash eurozone composite purchasing managers’ index, a key gauge of business conditions for the manufacturing and services sector, fell 1 point to 47.1, figures showed yesterday. That is its lowest level since November 2020 and the fourth consecutive month below the crucial 50 mark separating growth from contraction. One of the few bright spots in the survey was that companies in all sectors reported a slight easing of cost pressures, price growth and supply chain constraints. However, prices charged for goods and services still rose at the sixth fastest rate since such data started in 2002. Jobs growth increased marginally from October but remained low compared with the past 18 months. Following a few months of falling price pressure in manufacturing and services, the October print shows an overall stabilisation said Jens Eisenschmidt, chief European economist at Morgan Stanley. However, German businesses, at the hub of Europe’s energy crisis, reported that manu...
1 comment
Read more

EU debt reduction

  Brussels wants to give EU capitals extra time to curb their debts and create space for public investment as part of an overhaul of the EU’s deficit rules .  The European Commission would table a proposal at the end of the month to reform the Stability and Growth Pact ,  under which it would work out multi-year ,  country-specific plans with capitals for getting their debt burdens under control ,  EU officials said .  The proposals come as member states face mounting fiscal burdens as they spend hundreds of billions of euros sheltering businesses and households from the energy crisis .  Under the new blueprint ,  the commission would propose a four- or five-year plan to an EU member state to get its public debt burden on a credible ,  downward trajectory ,  officials said . The national fiscal plan would need to pass a debt sustainability analysis and be approved by the commission and EU council .  The new regime would ditch an EU ...
Post a Comment
Read more