A Volkswagen electric vehicle under $35,000 in the US? That could be the case soon. Head of strategy at VW Group America, Reinhard Fischer, said the automaker aims to build an EV under $35,000 in the US or Mexico.
Volkswagen aims to deliver an EV under $35,000
Volkswagen wants to compete with the best (meaning Tesla). To do so, it needs to offer competitively priced EVs.
At the Reuters Events Mobile Automotive USA 2023 conference, Fischer said VW wants to bring an EV under $35,000 to the US in 3-4 years. The automaker is also looking at sourcing battery packs locally to enable the sub-35K EV to qualify for the IRA tax credit of up to $7,500.
Fischer added “We are not scaling back plans for EVs in the U.S. market,” despite rivals Ford and GM delaying investments.
Volkswagen curently offers the ID.4 in the US. The electric SUV comes in eight different trims, starting at $38,995.
The VW ID.4 Standard is the only trim priced below $40K, and it features 209 miles range. For $43,995, the ID.4 Pro has up to 275 miles range.
Volkswagen is also launching the ID.Buzz, its three-row electric minibus next year. The minibus is roughly the same length and width as the VW Atlas Cross Sport. Prices have yet to be revealed, but it’s expected to start around $60,000.
Its flagship ID.7 will arrive at US dealerships next year. Volkswagen opened ID.7 orders in Europe in August, with prices starting at $62,000.
As you can see, that leaves a gaping hole in the automakers lineup. An affordable EV, under $35,000, would round out Volkswagen’s EV lineup.
With the ID.4 already being assembled in Chattanooga, TN, VW has the ability to enable the EV to qualify for the full $7,500 tax credit. It also has another plant in SC planned for its Scout brand. With this included, the new EV could run you around $27,500. Would you consider a Volkswagen EV at that price?
Electrek’s Take
Volkswagen has already made it known that it wants to produce affordable EVs. The automaker revealed its ID 2all concept in March, an electric car starting under $27,000.
CEO of Volkswagen Passenger Cars, Thomas Shafer, said “The ID 2all shows where we want to take the brand,” with improved designs and tech at an affordable price.
Vollkswagen Group’s CFO Arno Antilitz told Autocar in June “we’re quite confident that we can achieve that price point,” pointing to advances in battery tech and production.
While Volkswagen ponders plans for an affordable EV, several automakers are making it happen.
For example, Volvo’s EX30 (see our review) is arriving in the US next year. You can already place your reservation ahead of deliveries next summer. The compact electric SUV starts at $34,950 (exluding $1,295 destination) with up to 275 miles range.
After cutting prices, Tesla’s Model 3 starts at $38,990 with up to 272 miles range. The Tesla Model Y starts at $43,990 with 260 miles range.
Can you see why Volkswagen wants to introduce an EV under $35,000? Let us know in the comments if you would consider buying a VW EV at those prices.