Home » VW: Works council boss puts the brakes on plans for cheap electric cars

VW: Works council boss puts the brakes on plans for cheap electric cars

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VW: Works council boss puts the brakes on plans for cheap electric cars

Daniela Cavallo (left), head of the VW works council, at a demonstration in Wolfsburg with VW boss Oliver Blume (right). picture alliance/dpa | Michael Matthews

The “Amsterdam” project by VW and Renault for a cheap electric car under 20,000 euros is stalling, according to “Manager Magazin”. VW works council head Daniella Cavallo feels she has been involved too late and has concerns about the production locations. A decision on the project will only be made in the next few weeks with the involvement of the works council.

VW boss Oliver Blume wants to make progress with the cheap electric car – but the VW works council has concerns. The project could now stall, reports “Manager Magazin”.

The idea behind the so-called “Amsterdam” project: A small electric car under 20,000 euros, thanks to the collaboration between VW and the French car manufacturer Renault. With the chassis from Renault and the electric drive from VW, the successor to the E-up small car was to be built in Renault factories.

But the project by VW boss Oliver Blume, brand boss Thomas Schäfer and Renault CEO Luca de Meo is not making any progress. The reason: there is no consent from VW works council boss Daniella Cavallo, who feels she has been involved too late, writes “Manager Magazin”.

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At the heart of the dispute is the question of who should build the cars and where. To ensure that the electric car remains cheap, VW management wants to have it built by Renault, for example in Slovenia. However, the works council doesn’t like this: after all, VW has several underutilized plants in Europe.

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The company should examine several scenarios, including a solo project, with an open mind. A final decision will only be made in the next few weeks, including the works council.

This article was published on April 17, 2024 and has been updated.

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