Why Sweden Could Become Home To A European Tesla Factory

8 months ago by Steven Loveday 32

Tesla plans to announce more details regarding European expansion after Model 3 production is up to speed.

While other potential automotive startups (Faraday Future, Lucid) are attempting the monumental task and expense of building brand-new factories, Tesla acquired its Fremont facility secondhand.

This saved the company substantial time and funds, and now the Fremont factory is one of the largest and foremost in the world. Another similar opportunity may be presenting itself for the all-electric automaker, in Sweden.

NEVS 9-3 EV Sedan

Beijing-based automaker, New Electric Vehicle Sweden (NEVS), is currently occupying Saab’s prior plant in Trollhattan, Sweden.

However, the plant is large, and NEVS’ production is small. The company is set to build 150,000 electric Saab 9-3 sedans over the next four years (however, the company won’t be using the Saab name).

Of course, people in Sweden are tagging the vehicle factory as the perfect home for Tesla. Tesla has made it public that the company intends to pursue a European manufacturing facility, as well as a Gigafactory 2. This plant would be large enough, is barely being used, has a contract that will come to an end soon enough, is stocked with employees familiar with the field (and more specifically electric vehicles), and its location is advantageous.

As we have seen in other instances, people in the area are trying to get Tesla’s attention. Fredrik Sidahl, CEO of Swedish automotive supplier FKG, shared:

“I think the possibilities are quite good because Sweden has a well developed infrastructure with suppliers and expertise in building great vehicles with high technical standards.”

It seems that NEVS may actually be supportive of the idea as well. A spokesperson for the company said that Tesla could become a “valuable partner” for production and development:

“It’s part of our strategy to increase the capacity of our plant but we do not comment on the dialogue around this.”

Neither company is willing to divulge any specific details at this point. Tesla’s European plans are not immediate, and the company must keep its options open, as many other countries are making similar attempts to attract the electric automaker. Invitations and options have already come from the likes of Finland, Portugal, Spain, France, and Germany, among others.

 

Source: Teslarati

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32 responses to "Why Sweden Could Become Home To A European Tesla Factory"

  1. J P DeCaen says:

    How about Norway? They’ve bought lots of Teslas and they’ll need the jobs when the oil industry goes down.

    1. Mr T says:

      The factory lays right beside the borderline, 1 hour drive from Oslo.

    2. Mikael says:

      One of the main demands will probably be that the factory will be inside the EU.

      Norway is also a worse place to put it for a number of reasons, so that is not going to happen.

      Not that I find it remotely likely that they will put it in Sweden either.

      1. Pushmi-Pullyu says:

        Just what I was thinking; that Tesla would never choose Norway because it’s not in the EU.

        1. Rob Stark says:

          And Norwegian labor is super cheap too.

          1. JIMJFOX says:

            WHAT?? RU being sarcastic? Norway pays huge wages- I worked there 15 years ago & got over $100 an hour!

            1. Pushmi-Pullyu says:

              I think he was being sarcastic, but I admit that wasn’t my first reaction on reading his post.

              /sarcasm tags, or “winky” smileys [ 😉 ], are appreciated where irony is intended.

      2. JIMJFOX says:

        Why not? After reading all the advantages that an existing underused plant would give?

    3. JIMJFOX says:

      Norway is No.1 in EV’s for several reasons-
      1. Electricity is the cheapest commodity due to 98% hydroelectric generation.
      2. Norwegians have a very high standard of living with excellent wages.
      3. North sea oil is in decline but Norway has always been a major exporter rather than user.

      So a Tesla plant an hour away would be very attractive for that rich country.

    4. Joe says:

      They will pick a country with:
      – good central location to easily distribute all over the European Union
      – country with car industry tradition with a lot of suppliers
      – be part of the European Union is the minimum, and being part of the Euro zone will be even better for stability of the prices since most of the big European country share this currency.

      Likely serious candidate would be:
      – Germany (German quality reputation especially in car industry)
      – France (strong car industry, heavily invested into 100% electric cars development and promotion (up to €10 000 subsidies per vehicule (with a minimum of €6000 if you don’t trash an old diesel car).

  2. KM says:

    There are empty or under utilised car factories all over Europe. Since Tesla always tries to maximise incentives they will find Poland’s special economic zones with their preferential tax arrangements quite alluring.

  3. vdiv says:

    Will the cars come out in flat packets with cartoon booklets and require the buyers to assemble them with a tiny allen wrench? 😉

    1. Rhaman68 says:

      Funny but sad as you obviously have not seen any Tesla nor any electric vehicles. The benefits are amazing. Too bad you elect to use derisions versus looking at facts and data. By the way, the Earth is flat!

      1. Dav8or says:

        Really?? Lighten up. Fanboy has his undies in a bunch. I’ll take a Tesla in a box and put it together myself if it saves me some big bucks!!

      2. KUD says:

        Funny, that you make that statement. As I know VDIV and he drives a Tesla every day.

    2. MikeM says:

      Ouch! That stings.

      I got a simple file cabinet from IKEA that came with a cartoon DIY helper booklet having no less than 50 pages of unintelligible heiroglyphs.

      Finally I caved and payed them to come back and put it together for me.

      No DIY build-your-own-Tesla for me!

  4. SparkEV says:

    If not for heavily socialist leaning government, Greece, Spain, Portugal would be lot better. Their high unemployment means lots of ready-and-able bodies. Unfortunately, I wouldn’t risk those countries with their government policies.

    1. PJ says:

      You do realize Sweden is even more socialist along with most of Northern Europe. So it seems socialism is not really the problem. If it was Socialist German wouldn’t be making as many cars as they do.

    2. Mikael says:

      You make it sound like socialism wouldn’t be as great as it actually is.

      I assume you prefer misery and social inequality. You know, people can actually be both safe, happy and wealthy at the same time. Not to mention productive…

      1. SparkEV says:

        Socialism leads to misery and inequality. Youth unemployment in Greece and Spain hover around 50%. Compared to that Sweden is far more attractive to free market capitalism. For example, there’s no minimum wage in Sweden. Much of Sweden’s prosperity was built before many socialist-lite programs kicked in.

        If you want to talk about misery and inequality, I point you to shining socialist examples of North Korea and Venezuela (in addition to Greece and Spain). Sweden didn’t get to where it is today, because they emulated North Korea though it is slowly degenerating into it.

        1. Henrik says:

          You’ve got your facts wrong. Sweden prides itself with it’s socialism.
          Also, Sweden certainly got a minimum wage and it’s far above that of southern Europe.

          Kind regards
          Someone who actually lives in Sweden.

  5. Hurry up says:

    Good Nevs, High quality cars from Sweden!

  6. Rich says:

    Musk mentioned that future Gigafactories will include car manufacturing. I would be looking for a central location for distribution throughout EU and a location close to metal ore for battery production. I’m sure there are many other considerations. It’ll be interesting to see how this plays out.

  7. Pushmi-Pullyu says:

    I don’t think Sweden is a likely candidate, because of the high cost of labor there.

    More likely, as industry watchers have already pointed out, Gigafactory 3 will be located in some eastern European country where labor is cheap, and one that’s a member of the EU. My guess is that it will be located somewhere on one of the countries listed below.

    Please note that I didn’t check the list for factors other than geographical location; some might be too politically unstable, or too difficult to access by water and rail transportation, to be seriously considered.

    Bulgaria
    Croatia
    Czech Republic
    Estonia
    Hungary
    Latvia
    Lithuania
    Romania
    Slovakia
    Slovenia

    1. Priusmaniac says:

      Would that list not include Poland?

      1. Pushmi-Pullyu says:

        Yes, I should have included Poland on the list; it’s farther east than the Czech Republic. Geography ain’t my strong suit.

  8. LOL says:

    When Tesla come to a final stage decision making, there will be 2-3 candidates in the jar and one of them definitely Austria. Austria would be my prime choice, and second as well as third.

    1. Priusmaniac says:

      Austria?

      OK but then I think that Wallonia has an edge too.

      First region to industrialize on the continent, skilled workers, ready to attract with land and favorable conditions. Also super central with connection to France, Germany and Nederland.

      Caterpillar will soon leave a factory that could be re-affected for automobile production. This would also solve the France versus Germany question because they both see Belgium as a proxy manufacturing zone.

      Otherwise there is also Flanders but that is already one of the other places on the agenda.

      1. LOL says:

        The more to the south the better for Tesla. After all, have to take into account proximity of sea ports in Italy Trieste and Slovenia Koper, if Tesla want to cater customers in Mediterranean and even further. Considering the fact Tesla will imminently disrupt European market, neverending French-German feuds will only escalate, not get better, so serious Tesla-like business model should pick more tranquil environment, much more to the south.

  9. Sch says:

    Since it is a battery factory too, it could be close to the border area between Czechia and Germany where there are large deposits of lithium. And because of the cost of labor, and labor avaibility I would guess eastern Germany or Poland. Czechia has cheap labor, but at the moment it is a “Autoland” with the lowest unemployment rate in EU. So the cheap workers are actually not available at the market and Tesla would have to fight for them with three other car manufacturers and plethora of components suppliers.

    1. Lithium is great, but they also use Nickel and Aluminum. Aluminum in Batteries, And by the sheet or roll, in the car.

      So, where are mines for these items, and Aluminum smelters and sheet mfg, as well as Rail and Road hub points, etc.

  10. Pushmi-Pullyu says:

    I think Tesla should consider either the Duchy of Grand Fenwick or Florin.