Volkswagen plans to sell 25 BEV models in US by 2030 that qualify for full $7,500 tax credit
German automaker Volkswagen Group is looking to more than double its current share of the US market by prioritizing EV production in North America. By adhering to new terms laid out in the Biden Administration’s Inflation Reduction Act, Volkswagen intends to deliver at least 25 all-electric models over the next seven years that will qualify for the entire $7,500 federal tax credit.
Volkswagen Group may not be leading the all-electric charge in terms of technology, especially software, but the legacy automaker is still making moves almost daily to pivot toward varietal BEV production in order to deliver vehicles that are affordable and enticing to consumers. Despite other European automakers (including Porsche) splitting hairs over the nonexistent demand for e-fuels, Volkswagen Group continues to embrace an all-electric future, with the goal of gaining a larger share of the global market.
A huge chunk of that market lies in North America, where the automaker currently has a production footprint that is home to its ID.4 EV. That factory will soon be joined by a new US-based battery plant to support local EV production and help Volkswagen’s future models qualify for federal tax credits now that the US Department of Treasury has shared its battery guidance criteria.
Additionally, Volkswagen Group recently announced South Carolina as the new home of its next production facility, where its Scout sub-brand EVs will be built. Fellow marque Audi could soon join the assembly lines at one of those US factories as well, providing further evidence of North America sitting dead center on the Group’s office dartboard.
Volkswagen Group currently has a grip over roughly 4% of the US market today, but it looks to boost that number to 10% by the end of the decade. In order to do so, Volkswagen America’s CEO shared the company’s plans for broader availability stateside, utilizing federal tax credit opportunities as its catalyst.
Volkswagen goes all in on US production, federal tax credit
Volkswagen may be putting the pieces in place to gather a larger share of the US market, but it remains a tall task – one that the legacy automaker has taken on in the past with little success. The Volkswagen passenger car brand currently holds a meager 1.8% of the US market today but hopes to reach 5% by 2030.
The overall Group hopes to achieve the aforementioned target of 10% in the same period with the help of some of its more popular, premium marques, like Audi and Porsche. Volkswagen has a head start on some of its competitors with established EV production in the US already but will need to expand its assembly lines to models beyond its namesake brand in order to have a chance.
Those plans already include a $7 billion investment in US production, which will help Volkswagen begin production of its ID.Buzz electric van in 2024. This year alone, Volkswagen has already introduced plans for several more affordable EV models to the public but has not declared which, if any, will be assembled in the US.
It appears that plenty more are coming stateside, however. According to Volkswagen Group of America CEO Paulo Di Si, the automaker plans to sell 25 BEV models in the US by 2030 – all of which should qualify for the Inflation Reduction Act’s full $7,500 federal tax credit. That means their assembly and battery components must operate in North America or through a US free trade partner. Per Di Si in a recent Bloomberg Television interview:
We have a great opportunity in the US. I believe this is the right time and the right place.
To avoid similar follies from past attempts at US market saturation, Volkswagen Group is hiring designers and engineers to cater its future EVs specifically toward US consumers. As a result of emissions scandals and software issues, Volkswagen’s popularity has dwindled in the US, although the ID.4 has gained a strong following, and its upcoming ID electric van continues to generate… buzz.
Even Di Si admits the automaker’s US market targets are going to be tough to hit, but the CEO remains confident in the Group’s US plans.
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With its tire-blistering acceleration and record-setting performance, the Xiaomi SU7 Ultra has been getting attention throughout the auto industry, impressing everyone who’s seen it. That “everyone” now seems to include the OG supercar brand, itself.
CarNewsChina posted pictures from a Weibo user that reportedly show a Xiaomi SU7 Ultra exiting the storied Ferrari factory in Maranello, Italy. According to a Chinese blogger going by 西米露在博洛尼亚 (which seems to translate to “Sago Dessert in Bologna”), the prancing horse brand is actively benchmarking the Chinese hypercar for its own upcoming EV.
The SU7 Ultra was definitely coming from inside Ferrari’s facility. After verification, we learned this specific vehicle was officially purchased by Ferrari for testing, and the development of their next-generation electric platform.
Yet another Chinese auto blogger, 苏黎世贝勒爷, claims that Ferrari representatives visited Xiaomi headquarters last year, allegedly to discuss the joint development of next-generation high-performance EV motors.
The Xiaomi SU7 Ultra made its debut last year, promising 1,548 hp, sub 2.0-second 0-60 mph times, and a top speed well over 200 mph – all at a price lower than a Tesla Model S Plaid or Porsche Taycan Turbo GT. The car sold out almost immediately after it was unveiled, racking up some 50,000 orders almost overnight.
The new electric benchmark
In the automotive world, “benchmarking” is a process in which car companies systematically tear down each others’ competitive products to compare everything from sound insulation, vehicle ride and handling, component materials, and even manufacturing methods against their own or against other industry leaders. The goal is to evaluate performance, cost, quality, and other key metrics, effectively figuring out “where they stand” in the market.
If Ferrari really did buy an SU7 to benchmark it against their own upcoming electric supercar, it’s more than just a curiosity – it could mean that the highest tiers of automotive innovation have shifted from West to East. Maybe forever.
Featured image via Xiaomi; sources throughout the post.
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We’re finally getting our first teases of the upgraded 2027 Chevy Bolt, built on GM’s battery/motor platform formerly known as Ultium. So far, so good for the vehicle, which will be revealed later this Fall.
Chevy took to social media today to tease the 2027 Chevy Bolt, saying, “You asked, we listened. The #ChevyBolt is back and better than ever. More this fall. 👀”
Chevy ended the original Bolt program with the 2023 model, which was loved by a loyal group of customers (including myself). Some of the major gripes, including charging speed and rear brake lights, already look to be addressed. Also, a new more aggressive fascia is debuting.
Electrek’s take
GM has done an incredible job keeping the 2027 Bolt under wraps. It will be the first GM vehicle with a native NACS port after the Cadillac Optiq-V, which we spied in Seattle last week.
Hopefully, the new Bolt will have improved charging speeds over and above the 54kW that previous Bolts adhered to. One possible downgrade is that the old Bolt’s amazing wireless CarPlay/Android Auto system will likely be replaced by GM’s move to Android’s built-in experience. For a few years, the Chevy Bolt was the most affordable long-range EV, and it won our 2022 Electrek car of the year for its versatility and price.
I would, of course, like to see the new Bolt as a hot hatchback, but GM CEO Mary Barra has hinted that it will likely take more of the EUV’s SUV form factor. Things like AWD options, SuperCruise, pricing, power and range are yet to be revealed, but stay tuned to Electrek for the latest on Bolt developments.
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On today’s test-acular episode of Quick Charge, it’s a new day and a new Chinese ADAS test for Tesla to conquer – but this one’s got a LOT more pedestrian carnage to parse through! We’ve also got some great e-bike deals from Retrospec and a bladder-busting Hyundai.
Today’s episode is brought to you by Retrospec – the makers of sleek, powerful e-bikes and outdoor gear built for everyday adventure! To that end, we’ve got a pair of Retrospec e-bike reviews followed up by the updated Hyundai IONIQ 6 with nearly 350 miles of range from its updated long-range battery. With that, Hyundai now has the longest range Korean EV on the market, while Texas is adding megawatts of battery energy storage to beef up its troubled grid, and it’s doing so faster and cheaper than ever before.
Plus: Quick Charge listeners can get an extra 10% off the price of their next awesome e-bike by using code ELECTREK10 at retrospec.com!
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If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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