Volkswagen will build its prestige Trinity EV at its factory in Zwickau, Germany, and a battery-electric Golf at its main plant in Wolfsburg.
The Trinity battery-electric car is a flagship project for the VW brand to fight Tesla's dominance in electric cars. It will use the group's new SSP software-led platform, which VW says will enable Level 4 autonomy, meaning the car will be able to drive itself.
VW had initially planned to build a 2-billion-euro ($2.1 billion) factory for the model near its Wolfsburg headquarters. VW said on Friday there was no need for a new plant after it had shuffled its future production allocations.
Wolfsburg will build an electric version of the Golf hatchback based on the SSP architecture, VW said in a statement. VW Group's performance brand Cupra will get a version.
VW said models based on the SSP platform will launch at the end of the decade.