The past 18 months or so has been a turbulent time for automakers, with the ongoing semiconductor shortage resulting in production targets often going unmet. That said, the world's second largest car maker - Volkswagen - is seemingly unfazed by the shortage and is looking to increase output in the second half of this year. That's despite their Wolfsburg plant producing fewer than 400,000 vehicles in 2021, far below its original goal of around 730,000 according to the firm's works council. 

Per Reuters, VW is looking to expand their operations in Germany with a new EV factory. The exact location of this plant will reportedly be finalized in March, however it will be near the firm's headquarters in Wolfsburg. VW CEO Herbert Diess has repeatedly spoken about how VW needs to up their game to match the pace of Tesla, who's Giga Berlin plant should begin production in mid-March.

The new plant is part of VW's Trinity Project, which will see the firm build a flagship electric sedan in Wolfsburg from 2026. Volkswagen is particularly conscious of EV expansion in Europe, with the firm planning to stop ICE sales there by 2035. For other markets it will have a more relaxed approach.

VW also plans on increasing overall output in the second half of this year, despite the semiconductor shortage. Diess noted various models from VW's more premium brands, such as Porsche and Audi, are sold out for 2022 meanwhile the firm's truck business is also thriving.

The following weeks will be hectic for VW. On top of finalizing a location for the EV plant mentioned above, the automaker is set to unveil the highly anticipated ID.Buzz electric van on March 9. 

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