SEAT-VW says to go ahead with Spanish electric car and battery project

MADRID, Nov 9 (Reuters) – Volkswagen’s Spanish unit SEAT is to go ahead with a mega project to make electric vehicles and batteries after overcoming initial reservations about the scale of government subsidies for the company of strategic importance for Spain, she announced on Wednesday.

The SEAT-led project, which will also involve 60 other Volkswagen-linked companies, involves an investment of 10 billion euros ($10.06 billion) to electrify Spain’s automotive industry and make the country a European hub for production of electric vehicles and batteries. .

The government said last month that VW-SEAT would receive 397.4 million euros of the 877 million total of the first phase of the PERTE electric vehicle financing program using EU recovery funds in the event of a pandemic.

Although SEAT received the largest allocation, it initially said the funding was not enough. It was not immediately clear whether the funding had been increased. Local media reported that regional authorities had offered additional grants and loans.

“The acceptance of LOSS by the Volkswagen Group and SEAT is a sign of our strong commitment to Spain and Europe,” SEAT Chief Executive Wayne Griffiths said in a video, calling it “a day history for all of us.

The Volkswagen Group will electrify factories in Martorell and Pamplona and Spain will have its first battery factory in Sagunto, he said, adding that the project will create thousands of jobs.

Spain is the second-largest car-producing country in Europe behind Germany and plans to use European Union pandemic relief funds to bolster its industry.

A new round of grants will see the disbursement of more than €2 billion more to provide the continued support the sector needs to successfully tackle electrification, the government has said.

“This is a first step and now we will continue to look for solutions to develop our ambitious electrification plan,” said Griffiths.

($1 = 0.9939 euros)

Reporting by Andrei Khalip and Jessica Jones; Editing by Kirsten Donovan

Our standards: The Thomson Reuters Trust Principles.

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