Volkswagen plans to launch 8 new affordable electric vehicles by 2027, according to reports.
Volkswagen intends to launch eight new affordable electric vehicles by the year 2027.
In the 1970s, when rising oil prices affected the demand for gasoline vehicles, Volkswagen bet on a battery system to develop its first conceptual electric vehicle, the Elektro Bus. Now, faced with a significant drop in sales in Europe and China, the German automaker is once again focusing on affordable electric vehicles as part of its recovery strategy.
Thomas Schaefer, head of the Volkswagen brand, informed German media that the company plans to launch eight new models of affordable electric vehicles by 2027. Schaefer emphasized the importance of producing vehicles profitably and offering them at accessible prices. Among the new models is the ID.2all, a hatchback whose development is being accelerated, reducing its timeline from 50 to 36 months. This model, presented as a concept last year, aims for a price below 25,000 euros (approximately 27,000 dollars) for its expected launch in 2025.
Additionally, Volkswagen CEO, Larry Blume, has hinted at the arrival of an electric vehicle that would cost less than 22,000 dollars, to be released after 2025. However, it has not been clarified which models will be available in the U.S. market. Last year, Volkswagen America anticipated the launch of an electric vehicle priced below 35,000 dollars in the U.S. by 2027.
One of the main obstacles to reducing production costs and sale prices of electric vehicles is the high price of batteries. Volkswagen is working on the development of a unified battery across several plants in Europe, as well as a facility in Ontario, Canada. For buyers in the U.S. to benefit from the 7,500-dollar tax credit established by the Inflation Reduction Act when purchasing an electric vehicle, it is necessary for the vehicle and its components, including the battery, to be partially produced in the country.
Volkswagen already has a plant in Chattanooga, Tennessee, and plans to open a new one in South Carolina. However, there remains uncertainty about whether the new unified battery cells will be manufactured or assembled in these facilities.
