Volkswagen is gearing up for a major play in the US electric vehicle market, setting its sights on Tesla with the announcement of an affordable EV priced below $35,000 (€33,000) expected to hit the market by 2026.
Reinhard Fischer’s Pledge
Reinhard Fischer, Senior Vice President, and Head of Strategy for VW Group of America made the announcement at the Reuters Events Automotive USA 2023 conference in Detroit. He emphasized Volkswagen’s commitment to providing an affordable electric vehicle option for US consumers.
While Fischer didn’t spill the beans on the specifics of the upcoming model, the promise of an electric vehicle under the $35,000 mark aims to undercut Tesla’s dominance in the American EV landscape. The German automaker is entering the ring, and it plans to give Tesla’s Model 3 and Model Y a run for their money.
Made in the USA or Mexico?
One intriguing aspect of Volkswagen’s plan is the production location of the new EV. Fischer hinted that the vehicle might be built either in the US or Mexico. Currently evaluating multiple production sites, including the existing factories in Chattanooga, Tennessee, and Puebla, Mexico, Volkswagen is looking to make strategic decisions to optimize production and logistics.
Power Play: Local Battery Assembly
In a strategic move to maximize incentives under the US Bipartisan Infrastructure Law, Volkswagen is contemplating local assembly of battery packs for the new EV. This ambitious step aligns with the company’s broader plans, as they have already announced intentions to manufacture battery cells in Canada for their existing and future electric vehicles produced in North America.
Volkswagen’s decision to introduce an affordable EV is more than just a market move; it’s a challenge to Tesla’s supremacy. By offering a competitive alternative to Tesla’s popular Model 3 and Model Y, Volkswagen is positioning itself as a serious contender in the growing US electric vehicle market.
MEB Platform Foundation: The new affordable EV is expected to be based on Volkswagen’s MEB platform, the same foundation used for models like ID.4 and ID.5.
Impressive Range: Volkswagen is targeting a range of at least 250 miles (400 kilometers) for the new electric vehicle, ensuring it’s not just affordable but also practical for a variety of users.
Subscription Service Consideration: In a modern twist, Volkswagen is contemplating offering a subscription service for its new EV. This would allow customers to pay a monthly fee to enjoy the driving experience without the long-term commitment of ownership.
In the ever-evolving landscape of electric vehicles, Volkswagen’s move to make EVs more accessible could be a game-changer. The race to capture the hearts (and wallets) of US consumers is on, and Volkswagen is positioning itself to be a strong contender. Buckle up; the electric ride is about to get more exciting!