Despite the recent slowdown in the global electric vehicle market, Volkswagen remains committed to its EV plans for the U.S. market. Reinhard Fischer, senior vice president and head of strategy at VW Group of America, stated, "We are not scaling back plans for EVs in the U.S. market," The production of this affordable EV will take place in either the United States or Mexico.
Volkswagen currently operates manufacturing facilities in Puebla, Mexico, and Chattanooga, Tennessee, where they already produce the all-electric ID.4 with a base price of $38,995. Additionally, the company is planning to open a new plant in South Carolina to manufacture electric vehicles for the Scout brand.
Furthermore, Volkswagen is exploring the possibility of producing the batteries for the new EV in North America. They have announced plans to establish their first battery plant outside of Europe in Canada. If both the vehicle and its batteries are produced in North America, U.S. consumers purchasing this EV may qualify for $7,500 in tax incentives aimed at promoting EV adoption.
Volkswagen ID. 2all concept
While specific details about the vehicle remain unclear, Volkswagen is optimistic about cost savings achieved through its latest EV technology, including prismatic battery cells. They recently unveiled the ID.2all concept in Europe, a compact hatchback expected to retail for less than €25,000 ($26,776 USD), while still being profitable for the brand.
Although the compact size of the vehicle might be considered small for the U.S. market, Volkswagen's American division has expressed interest in a performance variant based on it, known as the ID.GTI concept. However, it's uncertain if Fischer was referring to this particular model or something entirely different.
Note: The image below the headline was created using AI and has no association with Volkswagen
Source: Reuters
