Electric car factory in Greece – The mega project and the benefits for the economy HELLAS

One has to look back many years to find a car production line in Greece. In the midst of a pandemic, such an agreement was signed with German “money”.

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Next.e.GO factory: 1,000 jobs are created for “made in Greece” electric cars

The company Enterprise Greece (Hellenic Investment and Foreign Trade Company SA) signed a “Letter of Intention for Cooperation” with Next.e.GO SE, which lays the foundations for the implementation of a strategy for the national economy, investment of full production scale electric cars in Greece. Next.e.GO SE is the only German company that manufactures electric battery vehicles based in Aachen. Through its proprietary disruptive 5G technology and a specially designed, innovative and dynamic BEV platform, e.GO provides electric vehicles with an emphasis on the long life cycle and attractive prices for consumers.

The investment concerns the installation of an electric car production industry in Greece. The factory will have a production capacity of up to 30,000 cars per year, while the amount of investment in the start-up phase is estimated at 100,000,000 euros. According to forecasts, 1,000 direct jobs are expected to be created at the plant and 5,500 indirect in the wider investment support ecosystem.

The investment plan includes the production of metal parts, the external thermoforming, the final assembly of vehicles and quality control, the recruitment of specialized staff and an extensive plan of continuous training at the company’s headquarters in Aachen, Germany. It is also planned to establish a Technology and Innovation Campus, which will connect scientific and technological research with production.

The benefits for the economy

Transfer of know-how from Germany to Greece in a sector unprecedented for Greek data, which fully corresponds to the government’s policy of turning to “green” development and especially to e-mobility.

The project will highlight Greece in the international market as one of the leading European countries in e-mobility through the creation of domestic production capacity.

A project with an extremely positive economic impact, as it is expected to contribute dynamically to the increase of employment with the simultaneous utilization of specialized, highly skilled human resources, the emergence of innovative technology in vehicle construction and the enlargement of the ecosystem of the supporting companies (clustering effect).

The development of a strong local network of suppliers is foreseen for the production needs of the factory unit. Specifically, in the fields of metal components, aluminum, textiles and the interior of vehicles, crystals, etc.

The implementation of the project is expected to attract the investment interest of other internationally renowned electric vehicle industries, gradually transforming Greece into a reference country for electric vehicles and an international brand name. It comes as a continuation of the recent announcement of the entry of the German VolksWagen in Greece (Astypalea) in the field of electric propulsion and autonomous driving.

The wider population is offered the possibility of quick access to electricity at an affordable cost.

Professor Hermann, CEO of Next.e. Go SE, stated:

The design and industrial features of e.GO Life 4.0 production technology on the one hand and the flexible business collaboration models it promotes, on the other, offer Next.e. Go SE the ability to transform urban mobility across Europe and beyond.

The political choice of the Greek government for carbon-free mobility responds perfectly to our mission to Next.e.GO SE. We are determined to make this partnership a success and look forward to making significant progress in the coming weeks and months.

Commenting on the agreement, Deputy Foreign Minister for Economic Diplomacy Costas Frangogiannis noted:

Greece returns dynamically to the investment map of large companies. A new perspective opens for our country with this agreement.

The facility will have a production capacity of up to 30,000 cars per year, while the amount of investment in the start-up phase is estimated at 100 million euros and is expected to employ 1,000 employees initially.

With this agreement, Enterprise Greece highlights the political value of the reform that strengthened Economic Diplomacy. We have a lot of work ahead of us for its implementation, but also for the facilitation of other business perspectives that are reviving the industrial production sector in our country.

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