Volkswagen Reveals New EV Plans

Volkswagen has plans to introduce an affordable electric vehicle in the U.S. market. The company aims to please with a price point under $35,000 for the new vehicle. During a trade conference in Detroit, Reinhard Fischer, VW Group of America’s product strategy chief, confirmed the company’s focus on North America. Furthermore, Fischer mentioned that the new model may come to life in the U.S. or Mexico.

Volkswagen already has plants in Chattanooga, Tennessee, and Puebla, Mexico, and plans to build a Scout-brand EV at a new South Carolina plant. With localized battery packs and the new facility, Volkswagen may qualify for the vehicle’s top $7,500 EV tax credit. According to an analysis from S&P Global Mobility, this tax credit could be a vital factor in doubling U.S. EV sales by 2030, compared to previous forecasts. However, the launch of Volkswagen’s under-$35,000 EV is still a few years away, with the expected timeline being between three or four years from now (2023), which means that the vehicle might not hit the market until 2027.

Unfortunately, the report did not provide details on which product VW Group of America’s product strategy chief Reinhard Fischer was referring to. Nevertheless, in Europe, the German automaker announced plans to bring back the Golf as an EV in the coming years. Furthermore, VW also proposed an ID.2 all-electric vehicle, similar to the Golf, that would be engineered for low production costs and a low sticker price. 

Inflation is another consideration, particularly when it comes to vehicle prices. Over the past few years, the average price of a new vehicle, electric or not, has increased to roughly $48,000, according to Cox Automotive, with EVs typically costing more. In comparison, VW’s budget-priced EV, slated to launch by 2025, might be significantly better, particularly if inflation pushes vehicle prices higher.

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Photo Source/Copyright: Volkswagen Newsroom