Volkswagen will submit a new request to Spain for European Union funds as it weighs whether it will produce a new electric car there, Wayne Griffiths, chairman and CEO of SEAT's Spanish unit, told Reuters.

The decision on production will depend not only on the allocation of such funding, but also on the viability of the project compared with Volkswagen facilities in other countries, timing and other factors, Griffiths said.

Volkswagen has already decided to start producing electric cars at its SEAT plant in Catalonia in 2025 and at VW's Navarra facility around the same time. It will also build a battery plant with funds from Spain's PERTE program, which consists mainly of EU aid to fight pandemics.

Last year, the Volkswagen-led project was allocated 357 million euros from the PERTE program. So far, however, only 30 percent of the total budget has been allocated under the program, with investments due to start by 2025.

Spain will launch a second, more flexible PERTE program, allowing investment until 2028, and a parallel, simpler aid scheme, Industry Minister Reyes Maroto said at a conference Tuesday.

He said these issues were discussed at a Feb. 7 meeting between Spanish Prime Minister Pedro Sanchez and Volkswagen CEO Oliver Blumet.