Volkswagen announces more than €500 million investment in Autoeuropa over the next five years

Thirty years on from the laying of the first stone at Autoeuropa, Volkswagen has announced it will invest more than €500 million over the next five years.

Volkswagen announces more than €500 million for Autoeuropa

The commitment was revealed on Friday during the 30th-anniversary ceremony for the car plant in Palmela. “Over the next five years we intend to invest more than €500 million in product, equipment and infrastructure,” said Alexander Seitz, a Volkswagen executive.

Seitz added that the site is ready to keep pace with the sweeping changes under way in the automotive sector, stressing the importance of the Palmela factory both for Portugal and for Volkswagen itself: “This factory and its team are prepared to accompany the transformation of the automotive industry successfully.”

Leadership on an industry in transition

Thomas Hegel Günther, who will take up the role of Autoeuropa Managing Director on 1 December, focused on how far-reaching the shift in the sector has become. “The automotive sector is experiencing the greatest transformation in its history. It is not just a matter of swapping the combustion engine for an electric motor. It is a change of paradigm that affects the transformation of the entire production chain. From factories to brands, without forgetting suppliers.”

Marking the anniversary, Günther also underlined the ambition to sustain the project: “Today we are here to mark 30 years of Autoeuropa and we want there to be another thirty,” he said, as he succeeds Miguel Sanches.

Government leaders welcome the commitment

The ceremony was led by the President of the Republic, Marcelo Rebelo de Sousa, who said he was very pleased with the investment announced for Autoeuropa and promised support for what lies ahead.

Prime Minister António Costa also attended, noting that “30 years on, Volkswagen remains the largest private investment in Portugal”. He and Marcelo Rebelo de Sousa recalled the difficult period the automotive sector faced during the pandemic-particularly Autoeuropa-while pointing to solutions for the future.

Costa said Portugal can strengthen this leadership position thanks to the country having the largest lithium reserve in Europe, the eighth largest in the world, and the lowest cost of solar energy in Europe.

Marcelo praises workers

Marcelo Rebelo de Sousa also used the occasion to commend the attitude and commitment shown by employees over the past three decades: “The key to Autoeuropa was the ability of its workers to see beyond doctrine and political ideology. Dialogue always overcame every difficulty and that is what matters most. Autoeuropa does not stop and Portugal will not stop either,” he said.

He added: “There are some investors, there are also some directors, but the workers are thousands. And it is them we have to thank for the resilience and the ability of the factory to overcome challenges over the last 30 years.”