The Volkswagen group, which owns brands like Volkswagen, Skoda, Seat, and Porsche, among others, is “quite confident” that it can deliver electric cars at an enticing price of around $27,000 (€25,000) without losing money.
The statement belongs to the group’s chief financial officer Arno Antlitz, who was quoted by the British publication Autocar after he spoke at the Financial Times Future of the Car event.
The German automotive giant recently revealed the ID. 2all concept which is meant to show what a Polo-like EV will look like when it goes on sale as a series production vehicle sometime in 2025 at a price of around $27,000 (€25,000) in Europe.
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Additionally, VW has confirmed that it’s working on a smaller, even more affordable EV that’s slated to bear the ID.1 name and cost less than $22,000 (€20,000).
MG already sells the MG 4 EV in the United Kingdom for the equivalent of about $34,000 (27,000 GBP) and Renault-owned Dacia has had success with the entry-level Spring that starts at about $25,000 in Europe, so with VW planning on inundating the EU market with more similarly-priced models, it can only mean good news for zero-emissions enthusiasts.
Besides Volkswagen-branded affordable EVs, the German brand plans to fully utilize its portfolio of brands to make a profit, with sister models from Skoda and Cupra slated to make an appearance after the VWs.
“Now we can do a lot in terms of economies of scale,” Antlitz said. “Within our volume brand group, we’re producing four vehicles along with Cupra and Skoda. That volume will help us to bring prices down to be competitive and also still make money.”
Moreover, the Volkswagen Group has developed its own battery packs and is manufacturing them in-house at a factory in Valencia, Spain, which will greatly contribute to the automotive giant’s chances of returning a profit from the upcoming affordable electric models.
“There’s a lot of innovations coming in the technical side. This car will have the first in-house battery cells from our Valencia plant. We’re just ramping up; we will have much more scale by then,” VW Group’s CFO said.
It will be interesting to see how the German group’s offerings will compete with EVs from rival brands Renault and Lancia, and whether or not they’ll make their way to the United States.
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