Volkswagen to rake in almost half of Spain's EV subsidies

Peugeot Invest SA

25/10/2022 17:20

MADRID, Oct 25 (Reuters) - Volkswagen's  VOWG_p.DE 
Spanish subsidiary SEAT will rake in almost half of the nearly
900 million euros ($888 million) in government subsidies
allocated for electric vehicle development, Spain's Industry
Ministry said on Tuesday.
    Volkswagen said in a statement it would now analyse the
ministry's decision and study its impact so that planned
investment projects could be carried out with maximum
effectiveness.
    The carmaker had previously declined to comment on reports
that it was set to receive less than it needed and that it had
threatened to drop its plans for a factory if it was too low. 
    The state funds, part of the so-called PERTE scheme
promoting the production of electric and connected vehicles,
will be doled out to 10 e-mobility projects submitted by
companies that also include carmakers Mercedes-Benz  MBGn.DE ,
Opel  STLA.MI , Renault  RENA.PA  and Peugeot  PEUG.PA . 
    The SEAT-led project Future: Fast Forward will receive 397.4
million euros of the 877.2 million total that are to be
disbursed in PERTE's first phase, the ministry said.
    The project, in which 60 other Volkswagen-linked companies
also take part, foresees an investment of 10 billion euros to
electrify Spain's auto industry and turn the country into a
European hub for e-vehicle and battery production.
    Industry Minister Reyes Maroto said the projects showed
Spain's "great potential" to lead e-mobility in Europe and
promised to "continue working to make more public resources
available to the sector". 
    The companies will start receiving the money before the end
of the year and 90% of the aid granted to each beneficiary will
be paid out in advance, the ministry said. 
    This first round of subsidies will be followed by a new
phase, in which another over 2 billion euros will be disbursed,
to provide continuity to the support the sector needs to
successfully tackle electrification, it added.
    ($1 = 1.0134 euros)
 (Reporting by David Latona; Additional reporting by Victoria
Waldersee; Editing by Andrei Khalip and Bernadette Baum)
 ((david.latona@thomsonreuters.com; +34 918 35 68 13;))