German eGO set foot in Bulgaria, cars will be made in Lovech, and parts - in Yambol

The caretaker Minister of Economy Kiril Petkov and representatives of a German electric car manufacturer signed a Memorandum on the implementation of a priority investment project "Construction and management of an innovative plant for the production of electric cars e.GO in Lovech". "I am very proud that a German company of the future, which already produces electric cars, will make its main production in Lovech," the minister said during the signing of the memorandum. He pointed out that the investment is worth 140 million euros and expressed hope that the jobs will be over 1000. The Minister announced that the aluminum components of the car will be produced in Bulgaria, the cables - in Yambol, and added that there will be several more Bulgarian suppliers. Bulgarian specialists in Sofia will prepare the software of the electric car, adds BTA.

In front of journalists, the minister commented that the company will export to Europe. In two years, when the first car is ready, it will cost about 20,000 euros and have a mileage of about 200 kilometers, said Ali Verzai, chairman of the board of directors of e.GO - Germany. It is planned to produce two car models. The cars do not need a special charging station, and this can be done in 6 hours in our own garage, the minister said. Petkov added that there is an idea in the Ministry of Economy to build a power plant.

The Minister clarified that the state will not give a single euro before the first car is produced and added that the enterprise will be built with funds from the investor. The state incentives under the relevant law will be provided in three stages - at the completion of the enterprise and the production of the first car, when 10,000 cars are produced and sold per year and 20,000 cars. Upon reaching a production of 20,000 cars per year, which is the minimum for the manufacturer, the total support will reach 34 million euros, with the state providing the money when the cars are produced and sold, the minister said, adding that tax revenues are expected through profit and insurance to be more than the state support provided. If these results are not reached within the next seven years, no incentives will be given, the minister said. He specified that these parameters are part of the signed memorandum.

Bulgaria has been preferred as an investment destination over at least three neighboring countries, the minister said in response to a question. We would not give them incentives, we would give them added value, because a large part of it, and their suppliers are located in Bulgaria, Petkov commented. He added that the investor preferred Bulgaria because of the low taxes, as well as because of the efficiency of the negotiations, which lasted five weeks.

"For me, this is the smart way to make investments. Not with money ahead. With this deal, we defeated three other countries. Not with incentives, but with added value. That is why cluster strategies work. The other thing we know is that when we have low taxes, we have to use them, "the minister stressed.

"I believe there is nothing accidental about the dates. Exactly on this date 9 years ago the automobile cluster was established in Bulgaria. We are proud of what we have achieved over the years ", said Lyubomir Stanislavov - Executive Director of the Bulgarian branch.

The Minister thanked the whole team for the daily work that led to the investment. It is of great importance for him that a large part of the added value will be produced in Bulgaria.