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Home»Automotive»Volkswagen To Make Good with Bringing $35,000 Electric Vehicle in next 3-4 Years : Automotive Addicts
Automotive

Volkswagen To Make Good with Bringing $35,000 Electric Vehicle in next 3-4 Years : Automotive Addicts

Mike SmithBy Mike SmithNovember 11, 2023No Comments2 Mins Read
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Volkswagen is making good on the promise to introduce an inexpensive electric vehicle (EV) priced under $35,000 to the U.S. market inside the following 3-4 years. The announcement was made by senior executives during a Reuters conference, emphasizing the corporate’s commitment to advancing its electric vehicle initiatives in america.

Reinhard Fischer, senior vp and head of strategy at VW Group of America, reassured the general public that despite changes in geopolitics and global supply chains, Volkswagen will not be scaling back its plans for electric vehicles within the U.S. market. Ganesh Iyer, the CEO of Nio USA, a Chinese automaker, also shared insights in the course of the conference, stating that Nio remains to be contemplating a possible entry into the North American market by 2025.

Fischer outlined Volkswagen’s considerations for manufacturing the sub-$35,000 EV, citing options comparable to existing VW plants in Chattanooga, Tennessee, and Puebla, Mexico. Moreover, a brand new assembly plant in South Carolina, planned for VW subsidiary Scout, is being evaluated as a possible manufacturing location for the reasonably priced electric vehicle.

To further align with U.S. regulations and incentives, Fischer mentioned that Volkswagen is exploring the potential of localizing the assembly of battery packs for the reasonably priced EV. This move goals to qualify for extra incentives under the U.S. Inflation Reduction Act. The German automaker had previously disclosed plans to supply battery cells in Canada to support its current and future North American-built electric vehicles.

In contrast, Nio’s Iyer highlighted the importance of creating infrastructure before introducing electric vehicles to North America. Nio is reportedly considering various partnership opportunities to facilitate this infrastructure development. The corporate recognizes the necessity for a sturdy support system for electric vehicles, including charging stations and maintenance services, before venturing into the North American market.

Each Volkswagen and Nio’s statements reflect the dynamic landscape of the electrical vehicle industry, with automakers navigating geopolitical shifts, global supply chain challenges, and the need for strategic partnerships to make sure the successful integration of electrical vehicles into the North American market.

Source: Reuters

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