Volkswagen (VW) is setting its sights on a more affordable electric vehicle (EV) for the American market, aiming to bring the price below the $35,000 mark within the next three to four years. Reinhard Fischer, Senior Vice President and Head of Strategy at VW Group for the Americas, expressed the company's commitment to advancing their electric vehicle initiatives in the United States, emphasizing that there is no reduction in their plans.
Addressing attendees at the Reuters Events Automotive USA 2023 conference, Fischer outlined the evolving landscape that has influenced their decision-making process. Geopolitical shifts, changes in global supply chains, and other factors have prompted a reevaluation of the strategy for introducing electric cars in the US market.
Despite these challenges, VW remains steadfast in its commitment to providing affordable electric options for American consumers. In terms of production, Fischer outlined potential locations for manufacturing the budget-friendly EV.
Options include existing VW plants in Chattanooga, Tennessee, and Puebla, Mexico, as well as a forthcoming assembly plant in South Carolina planned for the VW Scout subsidiary. This strategic approach aligns with VW's broader commitment to expanding their electric vehicle portfolio in the North American market.
Notably, VW is exploring the possibility of establishing a localized battery plant, a move aimed at qualifying for additional incentives under the US Anti-Inflation Act. This initiative underscores the company's dedication to maximizing benefits available within the regulatory framework while also contributing to the growth of the electric vehicle sector in the region.
Furthermore, Fischer shared insights into VW's earlier announcement regarding plans to manufacture battery cells in Canada. This initiative is designed to support the production of both current and future electric vehicles within North America, reinforcing the company's long-term vision for a sustainable and competitive presence in the electric vehicle market.
As VW works towards achieving its goal of offering an affordable electric vehicle below $35,000, the company remains agile in adapting to the dynamic factors that shape the automotive industry, demonstrating a commitment to innovation and meeting the evolving demands of environmentally conscious consumers.