A few months after taking office, Volkswagen boss Oliver Blume is faced with tough decisions. Because the development of the future model Trinity is hanging, he has to postpone the market launch planned for 2026 for years, as the Handelsblatt has learned from corporate circles. The delay is two to three years. “Maybe it will drag on until 2030,” said a person familiar with the topic. Other vehicle projects are to be given priority. First, the “Manager Magazin” reported on the problems. Volkswagen did not want to comment on this. The Trinity electric vehicle is of central importance for the orientation of the VW core brand. The car is to be redesigned from the ground up and be able to steer through traffic largely autonomously. The model was originally intended to reach “Level 4”, which would allow completely independent driving on selected routes such as motorways.
When it comes to developing the necessary software, however, Volkswagen is not moving fast enough. The schedule for the internally called “2.0” software is being pushed back, the person said. The focus will be on the “1.2” software developed in parallel, which is required for the models that are about to be launched. Both operating systems are developed by Cariad, the group’s own software unit.
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However, Cariad does not manage to develop the two variants “1.2” and “2.0” at the same time. CEO Blume turns the software decisions of his predecessor Herbert Diess by 180 degrees. While Diess had even considered giving up version “1.2”, it now has clear priority under Blume.
Oliver Blume had to postpone a start even as Porsche boss
This version is mainly needed for models that Audi and Porsche plan to launch in early 2024. The two premium brands want to earn billions with the new electric cars by the end of the decade. Ultimately, the group also benefits from this. As Porsche boss, Oliver Blume had to postpone the new electric Macan by a year due to delays in software development.
Production at VW in Wolfsburg
In a message to employees, Blume and VW brand boss Thomas Schäfer at least confirmed the idea that the Trinity project could be postponed for years. “We are currently taking the opportunity to look at all projects and investments and to check their viability,” wrote the two VW managers.
First of all, a decision will be made about the further software timetable. “This is followed by the development of the product strategy with the specific projects of the individual brands for the next few years,” says the letter, which is available to the Handelsblatt. Once the model development has been determined, a decision will then be made about the plant allocation, i.e. the production sites for the new cars.
Blume’s predecessor Herbert Diess wanted to create a challenger for the models of the US manufacturer Tesla with the Trinity. The Californians build their electric cars in Grünheide near Berlin in a completely new plant – and faster than Volkswagen. Until his retirement in the summer, Diess had repeatedly pushed for a new factory building for the Trinity model. A departure from these plans is also becoming apparent under Oliver Blume.
Trinity work could no longer be needed
The stalemate with the software and the VW model has far-reaching consequences: The factory planned especially for Trinity in the Warmenau district of Wolfsburg is now probably no longer needed. As a result of the shift, the main plant could be converted and the Trinity could roll off the assembly line there after its development was completed, according to corporate circles.
So far, it has always been said at Volkswagen that the main plant cannot be converted for the new model at the same time because of ongoing production. The fact that there could now be time and space for Trinity is also due to the poor utilization of the plant. Volkswagen could build more than 800,000 cars there every year, and the group currently manages just half.
Underutilized
800,000
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and more could be built at the main plant in Wolfsburg every year. The group is currently only halfway through.
The new factory, the construction of which was decided in March, should cost around two billion euros. Construction is scheduled to begin next spring. The planning and preparatory work has been going on so far. A decision on an end would be made by the board of directors and the supervisory board in the coming weeks, according to group circles. It is currently becoming apparent that the Supervisory Board could make a decision in February. That would be in time before the planned start of construction.
In the letter to the employees, Blume and Schäfer emphasized that they had a firm eye on job security. At Volkswagen, there is currently job security until 2029. If the new factory should not actually come, Blume and Schäfer would have to secure employment through the main plant. Around 14,000 people currently work in production in Wolfsburg.
To do this, it would be important for the core brand to get a replacement model for the postponed Trinity. That is why the board wants to reactivate earlier plans that had disappeared in the drawer under Diess. According to them, the currently used platform for electric cars, called “MEB” internally, can be refreshed to develop at least one new model. There will either be an electrified successor for the Golf or for the higher Tiguan, it said.
The new car could go on sale before 2026. In this way, the Wolfsburg plant could continue to be utilized to capacity and employment secured until Trinity goes into production.
More: VW plans electric cars for less than 25,000 euros