SEAT-VW says to go ahead with Spanish e-car, battery project
Volkswagen’s Spanish unit SEAT will go ahead with a mega project to make electric vehicles and batteries after overcoming initial reservations about the size of government subsidies for the venture of strategic importance for Spain, it said on Wednesday.
The SEAT-led project, in which 60 other Volkswagen-linked companies will also take part, anticipates an investment of 10 billion euros ($10.06 billion) to electrify Spain’s auto industry and turn the country into a European hub for e-vehicle and battery production.
The government said last month VW-SEAT would receive 397.4 million euros of the 877 million total in the first phase of the PERTE electric vehicle financing programme using EU pandemic recovery funds.
Although SEAT received the largest allocation, it initially said the funding was not sufficient. It was not immediately clear if the financing has been increased. Local media have reported regional authorities had offered some additional subsidies and loans.
“The acceptance of the PERTE by the Volkswagen (ETR:VOWG_p) Group and SEAT is a sign of our strong commitment to Spain and to Europe,” SEAT chief Wayne Griffiths said in a video, calling it “a historic day for all of us”.
The Volkswagen Group will electrify the Martorell and Pamplona factories and Spain will have its first battery plant in Sagunto, he said, adding that the project will create thousands of jobs.
VOLKSWAGEN AG Technical Analysis: Daily Chart
In the daily charts, VOLKSWAGEN AG is trading in an up channel. VOLKSWAGEN AG is currently trading above 20 days SMA & below 50 and 100 days SMA.
RSI is in buying zone which indicates bullishness. MACD is currently above zero which indicates bullishness.
Its immediate support is 175.40 & the resistance level is at 181.94.
VOLKSWAGEN AG will trade in an up channel until there is trend reversal.
How to Trade VOLKSWAGEN AG this Week:
VOLKSWAGEN AG will follow the uptrend until there is trend reversal. So, remain bullish on VOLKSWAGEN AG
