a new one is coming trade war between the United States and Europeafter the Americans have launched their Inflation Reduction Act (IRA) project that plans to irrigate hundreds of billions of dollars to the projects for the energy transition. Some subsidies that put plans for Europe at risk, and where large groups such as Volkswagen have pressed the pause button on their investments awaiting events.
As reported ReutersVolkswagen would have temporarily halted the project to build a huge battery manufacturing facility in eastern Europe. A key project in the future of the brand that has recently revised its sales targets for electric cars in Europe upwards to 80% by 2030.
The reasons for this move are clear. See what response Europe gives to the Biden administration plan. Something that we can translate into “let’s see who gives us more public aid.”
And it is that the question is directly related to money. But it is a lot of money. According to Reuters, it is estimated that Volkswagen could receive between 9,000 and 10,000 million euros in subsidies if you build your factory in the United States instead of in Europe.
No statements have been made from Volkswagen about this news, and they have limited themselves to indicating that their plans maintain the objective of establishing six gigafactories that will have an estimated annual capacity of 240 GWh by 2030.
According to a statement released this Wednesday by Volkswagen itself “We stick to our plan to build battery factories for around 240 GWh in Europe by 2030, but for this we need the right framework conditions. That is why we wait and see what the so-called EU Green Deal will bring«.
Now a period of uncertainty is opening up where Europe is risking the huge investments that the establishment of factories in its territory will bring, as well as the creation of tens of thousands of qualified jobs.
Something that directly affects us in Spain, where there are plans to manufacture several electric models that can now be in the air.
But The United States is playing an advantage by flouting all the rules and conventions of the World Trade Organization. with a public aid program and rules that punish vehicles produced outside its borders, and even those manufactured within its territory that use components outside the markets with a free trade agreement, putting the European industry at serious risk dependent on exports to the North American market.
And what do you think? What should Europe do in this situation?
