The main of Volkswagen’s Spanish unit SEAT reported on Thursday the subsidies offered by Spanish authorities for a battery factory building and electric powered auto generation “is not sufficient”, but voiced optimism about getting a alternative.

Talking at a panel in Madrid, SEAT Chairman Wayne Griffiths said the alternative, which he did not specify, has to be observed within 10 times.

Volkswagen stated very last 7 days it envisioned additional in subsidies from Madrid and was analyzing the next measures right after it been given 397.4 million euros ($388.26 million) of the 877.2 million whole in the 1st stage of the government-operate programme, regarded as PERTE.

VW-SEAT was the carmaker that obtained the most significant allocation.

Spain is Europe’s next-most significant car manufacturing country at the rear of Germany and is planning to use European Union pandemic reduction resources – which make up a important portion of the PERTE money – to improve its industry.

The SEAT-led task, in which 60 other Volkswagen-joined corporations also take aspect, foresees an investment of 10 billion euros to electrify Spain’s vehicle marketplace and convert the nation into a European hub for e-vehicle and battery generation.

The very first spherical of subsidies will be followed by a new stage, in which a further around 2 billion euros will be disbursed, to present continued assist the sector desires to efficiently tackle electrification, the government has said.

“Spain is able of generating one particular of the ideal automobiles in the environment,” Griffiths mentioned, highlighting the country’s renewable strength ability.

Nevertheless, he lamented the truth that the country had also 1 of the cheapest shares of electrical automobiles in Europe.

“It’s a disgrace,” Griffiths explained, including that Spain desired to react immediately to avoid staying guiding.