Autoeuropa will receive 30 million from the Government

Autoeuropa will receive €30 million from the Government to support the investment that the Palmela factory has been making, particularly in terms of decarbonization, totaling €600 million that will be invested by the end of 2028.

According to the Executive, this is the "maximum level of aid" permitted by European regulations. "The Volkswagen Group's decision to produce the new 100% electric model in Palmela, a highly significant industrial investment, confirms its confidence in the talent of the Volkswagen Autoeuropa team. This investment is also a sign of confidence in Portugal," said the Minister of Economy and Territorial Cohesion, Manuel Castro Almeida, adding that "it is a decision that places Portugal at the forefront of electric mobility and accelerates our energy transition."

At stake is the production of the ID.EVERY1 electric model, as well as the start-up of the new painting unit – which foresees a 100% reduction in CO2 emissions compared to the current system – and the new large press.

For the Minister of Economy, this investment in the Palmela factory is "strategic" to "accelerate the export potential of the national economy," whose increased share of Gross Domestic Product (GDP) the Government considers essential for economic growth and for the convergence of Portuguese incomes with those of the rest of Europe. "Only economic growth allows us to increase people's incomes and sustain the welfare state," he emphasized.

Thomas Hegel Gunther, Managing Director of Autoeuropa, stated: "Today we celebrate the present and future of Autoeuropa. These are fundamental milestones for the future and modernization of the factory. The new equipment will aid in the production of the successor to the current T-Roc, which will feature a striking design, be technologically sophisticated, and will continue the T-Roc's extraordinary commercial performance."

Autoeuropa, Portugal's largest car production plant, is currently dedicated exclusively to the T-Roc, the German brand's compact SUV, and was responsible for 90.5% of light vehicles produced in Portugal in 2024, an increase of 7.2% compared to 2023.

It should be remembered that in March it was revealed that the Palmela factory had been chosen to manufacture Volkswagen's new electric car model, a comparatively lower-cost vehicle that is expected to cost around 20,000 euros.