Thursday, April 2, 2020
News Volkswagen EV Prices Will Be Unaffected By Loss Of Tax Credits

Volkswagen EV Prices Will Be Unaffected By Loss Of Tax Credits

VW figures the scale of its EV sales will be strong enough to leave pricing unchanged after federal tax credits are cut.

  • Volkswagen’s large scale EV plans will keep costs reasonable.
  • Keogh thinks that EVs will make up between 10% and 20% of VW’s annual sales in the U.S. by 2025.
  • The ID.4 compact crossover starts it all later in 2020 with a price in the $30k range.

This is a unique a bold statement. We review electric vehicles on a regular basis and we almost always make a point of not describing pricing with incentives and tax credit included. The reason is simple: We know they won’t last forever. We also know that many carmakers rely heavily on these credits to move their products. No so with VW as they say they can hold the “reduced” prices once the credits are gone

In the US, the Volkswagen Auto Group is entitled to up to 200,000 federal tax credits of $7,500. Volkswagen of America CEO Scott Keogh, in a conversation with Automotive News at the recent LA auto show, said that VW, Audi and Porsche buyers and dealerships will benefit from these credits for about two years. Once the well dries up, this is when VW’s mass production plan truly kicks in.

Keogh said: “We’re going to be putting upwards of 20 million products on this platform, and I think that’s going to be the holy grail power of the group because it really starts to lead to some supplier conversations.” “When Volkswagen can buy components in increments up to 20 million units, this can really lead to some dramatic scaling effects.”

Sometime next year, VW will introduce the ID.4 compact crossover with a starting price in the low- to mid-$30,000 USD. It will be the first of at least four 100% full EVs Volkswagen intends to launch in North America by 2022. This is only the North American part of the plan as Europe, Asia and other market are earmarked for a serious onslaught of EVs in the coming years.

The economy of scale comes from the fact that all of these vehicles will be built on the group’s MEB electric platform and that they are on track to invest €60 billion in hybridization, electric mobility and digitalization. By 2030, VW will introduce up to 75 all-electric models and produce in the neighbourhood of 26 million EVs globally.

Volkswagen’s plan is, in our opinion at least, brilliant. They will feed the need for SUVs with the ID.4, then build on nostalgia with the Microbus (ID. Buzz), then a station wagon (ID. Space Vizzion concept) and then, simply put, anything is possible.

Volkswagen ID. Space Vizzion | Photo: Michel Deslauriers

Volkswagen ID. Space Vizzion | Photo: Michel Deslauriers

Volkswagen ID.3 production
Start of the Volkswagen ID.3 production in Zwickau | Photo: Volkswagen

Volkswagen ID Buzz Cargo 1

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Matt St-Pierre
Matt St-Pierre
Trained as an Automotive Technician, Matt has two decades of automotive journalism under his belt. He’s done TV, radio, print and this thing called the internet. He’s an avid collector of many 4-wheeled things, all of them under 1,400 kg, holds a recently expired racing license and is a father of two. Life is beautiful. Send Matt an emai

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