VW’s Affordable EV Push: A Blast from the Past to Save the Future

Volkswagen’s banking on affordable electric vehicles to revive its flagging sales in Europe and China, echoing a strategy from the 1970s oil crisis. According to Fortune, the German automaker plans to roll out eight new budget-friendly EVs by 2027.

From Elektro Bus to ID.2all: VW’s Electric Evolution

Back in the early ’70s, VW experimented with its first electric concept, the Elektro Bus, responding to sky-high oil prices. Now, they’re at it again. VW brand chief Thomas Schaefer told German media, “We have to produce our vehicles profitably and put them on the road at affordable prices.”

One of these new models is the ID.2all hatchback. VW’s fast-tracking its development, cutting the timeline from 50 months to just 36. They unveiled the concept last year, promising a price tag under €25,000 ($27,000) for its 2025 release.

Ambitious Plans and Price Points

VW’s not stopping there. CEO Larry Blume’s hinted at an even cheaper EV, coming in at under $22,000 after 2025. But here’s the catch – we don’t know which of these models will make it to the U.S. VW America’s only committed to bringing an under-$35,000 EV stateside by 2027.

The Battery Battle

The big hurdle? Battery costs. VW’s tackling this head-on, developing its own unified battery cell in Europe and Canada. But for U.S. buyers to snag that sweet $7,500 IRA tax credit, the cars and their components need some domestic production.

VW’s got a plant in Chattanooga and another planned for South Carolina. The question is: will those unified battery cells be built or assembled there?

EVXL’s Take

VW’s affordable EV push could be a game-changer, especially in markets like Europe and China. It’s reminiscent of their strategy during the ’70s oil crisis, but with a modern, electric twist. This move aligns with the broader industry trend we’ve been seeing, where manufacturers are racing to make EVs more accessible to the average consumer.

Looking at VW’s plans in the context of other automakers, it’s clear they’re not alone in this pursuit. For instance, we’ve recently covered Tesla’s efforts to develop a more affordable model, and GM’s push into the budget EV market. VW’s approach could potentially shake up the market and accelerate EV adoption globally.

What do you think about VW’s affordable EV strategy? Will it be enough to boost their sales and compete in the increasingly crowded EV market? Share your thoughts in the comments below.​​​​​​​​​​​​​​​​