As Tesla TSLA gears up to potentially make a €25,000 (about $27,000) electric car at its Berlin gigafactory, industry leaders and contemporary car manufacturers have started to release cars on their own.
Volkswagen VLKAF for instance, has gone back to the German meaning of its name, revealing plans for its own €25,000 electric car in March ahead of the reveal of a production version in 2025.
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With the American market being key to VW's success, the German marque has some plans to expand its electric presence, even in the face of electric car trends slowing down.
At a conference held by Reuters in Detroit, VW Group of America senior vice president and head of strategy Reinhard Fischer said that VW is aiming to bring an electric vehicle for under $35,000 to the U.S. market in 3-4 years.
“We are not scaling back plans for EVs in the U.S. market,” Fischer said.
The plan for this specific U.S.-market focused EV is a very strategized one. According to Fischer, this specific vehicle will be produced in either the United States or in Mexico. Currently, Volkswagen operates plants in Puebla, Mexico, and in Chattanooga, Tenn., where it currently builds the ID.4 electric crossover.
Additionally, VW plans to open a 1,100 acre plant outside Columbia, S.C for its electric Scout brand.
The German automaker's SVP also said that the company is also looking to assemble this EV's batteries in North America. VW is in the process to build a battery factory in St. Thomas, Ontario, Canada with PowerCo SE, which plans to break ground in 2024 and be operational in 2027.
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If the plans line up together, Volkswagen's new $35,000 EV would be eligible for federal tax incentives of up to $7,500.
Currently, Volkswagen's most inexpensive EV offering is the Chattanooga-built ID.4 crossover SUV, which starts at $38,995 before incentives. The German marque is set to introduce its newest EV offering, the ID.7 sedan, to dealer lots sometime in 2024.
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