It is becoming increasingly difficult to run a battery factory in Europe. While Swedish Northvolt struggles to survive, Italy's government withdraws support for Mercedes and Stellantis' plans in Termoli.
The Italian company ACC, which is a joint project between Mercedes and Stellantis, has found it acutely difficult. The country's government has indeed withdrawn a billion dollar loan.
The company, which will manufacture battery packs for the two car groups, had been offered a state subsidy of one and a half billion Danish kroner.
That's what Automotive News writes.
But now the support, which was supposed to be used to build a factory in the town of Termoli, has been cancelled. Instead, the Italian government announces that it would rather spend the money on other 'climate initiatives'.
Neither Northvolt nor ACC are the only battery factories that are currently having a very difficult time financially. The world's fourth largest car battery manufacturer is in a state of emergency and German Varta AG had to be saved by Porsche the other day to avoid going under.
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This is how the crisis atmosphere spreads in general in the car industry. The first car brands – i.a. in the form of Fisker Inc. has already been toppled by bankruptcies.
But things are also going badly with sub-suppliers. In July, one of the very large sub-suppliers broke its neck on a tax debt in the billions range, and both Recaro and BBS, which manufacture products for the aftermarket, are fighting to avoid bankruptcy.
Should it still happen that BBS goes bankrupt, it will be the fifth time in the company's history. It is less than a year ago that the rim business was bought by some Turks. But the new owners have disappeared from the factory, say the employees.
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