Volkswagen wants to launch an EV under $35K in the US, says it’s not scaling back
A Volkswagen electric vehicle under $35,000 in the US? That could be the case soon. Head of strategy at VW Group America, Reinhard Fischer, said the automaker aims to build an EV under $35,000 in the US or Mexico.
Volkswagen aims to deliver an EV under $35,000
Volkswagen wants to compete with the best (meaning Tesla). To do so, it needs to offer competitively priced EVs.
At the Reuters Events Mobile Automotive USA 2023 conference, Fischer said VW wants to bring an EV under $35,000 to the US in 3-4 years. The automaker is also looking at sourcing battery packs locally to enable the sub-35K EV to qualify for the IRA tax credit of up to $7,500.
Fischer added “We are not scaling back plans for EVs in the U.S. market,” despite rivals Ford and GM delaying investments.
Volkswagen curently offers the ID.4 in the US. The electric SUV comes in eight different trims, starting at $38,995.
The VW ID.4 Standard is the only trim priced below $40K, and it features 209 miles range. For $43,995, the ID.4 Pro has up to 275 miles range.
Volkswagen is also launching the ID.Buzz, its three-row electric minibus next year. The minibus is roughly the same length and width as the VW Atlas Cross Sport. Prices have yet to be revealed, but it’s expected to start around $60,000.
Its flagship ID.7 will arrive at US dealerships next year. Volkswagen opened ID.7 orders in Europe in August, with prices starting at $62,000.
As you can see, that leaves a gaping hole in the automakers lineup. An affordable EV, under $35,000, would round out Volkswagen’s EV lineup.
With the ID.4 already being assembled in Chattanooga, TN, VW has the ability to enable the EV to qualify for the full $7,500 tax credit. It also has another plant in SC planned for its Scout brand. With this included, the new EV could run you around $27,500. Would you consider a Volkswagen EV at that price?
Electrek’s Take
Volkswagen has already made it known that it wants to produce affordable EVs. The automaker revealed its ID 2all concept in March, an electric car starting under $27,000.
CEO of Volkswagen Passenger Cars, Thomas Shafer, said “The ID 2all shows where we want to take the brand,” with improved designs and tech at an affordable price.
Vollkswagen Group’s CFO Arno Antilitz told Autocar in June “we’re quite confident that we can achieve that price point,” pointing to advances in battery tech and production.
While Volkswagen ponders plans for an affordable EV, several automakers are making it happen.
For example, Volvo’s EX30 (see our review) is arriving in the US next year. You can already place your reservation ahead of deliveries next summer. The compact electric SUV starts at $34,950 (exluding $1,295 destination) with up to 275 miles range.
After cutting prices, Tesla’s Model 3 starts at $38,990 with up to 272 miles range. The Tesla Model Y starts at $43,990 with 260 miles range.
Can you see why Volkswagen wants to introduce an EV under $35,000? Let us know in the comments if you would consider buying a VW EV at those prices.
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Tesla has wiped off the 26,000 miles on the odometer of a Cybertruck in service, scratched the vehicle, and then returned it to the owner like nothing happened.
A Tesla Cybertruck owner in Oregon was quite surprised when he went to pick up his Cybertruck, which was in service to install a new lightbar, fix some panel gaps, and figure out an ABS alert that wouldn’t go away.
According to a thread on the Cybertruck Owners Club, Tesla had wiped the odometer clean on the Foundation Series ‘Cyberbeast’, which had over 26,000 miles on it.
The owner shared a video of the Cybertruck’s odometer going from 0 to 1 mile for the second time:
The odometer on the vehicle was wiped and both the app and service many also showed the same mileage.
The owner shared a screenshot of the app after 15 miles:
He went to the online forum for advice:
Anyone else have their odometer Thanos-snapped after a controller swap? Can Tesla unsnap it or am I forever “True Mileage Unknown”?
Interestingly, Tesla is currently being sued for allegedly messing with the odometers of its vehicles. However, the lawsuit is for accelerating the mileage, not reducing it, like in this case.
It was not the only surprise from this service visit for this Cybertruck owner.
The owner was not satisfied with the lightbar installation, which he claims has a half-inch gap on the passenger side while it is flush on the driver side. He wrote:
It’s basically smiling sideways at everyone.
It’s also unclear why Tesla was messing with the vehicle’s tailgate, but it ended up having a bolt moving around it, causing scratches and Tesla left a bolt unbolted:
At this point, the truck was returned with more problems than it had when it entered service.
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Nissan is on the brink of collapsing. After the Honda deal fell through, it looks like another Japanese automaker is tossing it a lifeline. As Nissan struggles to stay afloat, Toyota is emerging as a potential “backer” in a new tie-up.
Are Toyota and Nissan partnering?
“If we don’t take action now, the situation will only get worse,” Nissan’s President, Ivan Espinosa, said during a press conference on May 13.
Facing falling sales, ballooning debt, and slumping profits, Nissan introduced a new recovery plan last week, “Re:Nissan.” The struggling automaker aims to cut costs by 250 billion yen to return to profitability by FY 2026.
As part of its efforts to turn the business around, Nissan will cut 20,000 jobs by FY2027. It’s also abandoning plans to build a new EV battery facility in Japan. Seven other plants will be closed, including one in Thailand and two in Japan.
After its planned EV merger with Honda fell through in February, rumours surfaced that Nissan was scrambling to find another partner.
According to a new report from Japan’s MainiChi, a Toyota executive recently reached out to Nissan about a potential partnership. The tie-up could involve Toyota acting as Nissan’s “backer” to support it while it restructures.
Nissan and Toyota both unveiled a wave of new electric vehicles set to roll out over the next few years. The upgraded Nissan LEAF EV will arrive in the US and Canada later this year with more range, an NACS port, and a new crossover style. It will be one of ten new Nissan or Infiniti models to arrive by 2027.
In Europe, Nissan will launch the next-gen LEAF later this year, followed by the new Micra EV and Qashqai electric crossover. In 2026, the new Nissan Juke EV will join the lineup.
Meanwhile, Toyota’s upgraded bZ electric SUV (formerly the “bZ4X”) will arrive at US dealerships in the second half of 2025.
In 2026, the smaller C-HR electric SUV and rugged bZ Woodland EV will follow. By the end of the year, Europe will see three new Toyota electric SUVs: the C-HR+, Urban Cruiser, and upgraded bZ4X.
Electrek’s Take
Toyota already has a stake in several Japanese automakers, including Subaru (20%), Mazda (5.1%), Suzuki (4.6%), and Isuzu (5.9%), so backing Nissan wouldn’t come as a shock.
Espinosa said Nissan was open to new partnerships. Nissan’s chief said the company will continue collaborating with others, including Mitsubishi, which will use the upcoming LEAF as the basis for its new EV for North America.
Japanese carmakers have been notoriously slow in shifting to all-electric vehicles, which is now costing them in key overseas markets like Southeast Asia, Central and South America, and others.
Chinese EV leaders, like BYD, are quickly expanding overseas to drive growth this year. Next year, it will launch its first kei car (see the first spy shots), or mini EV, which is already being called “a huge threat” to Japan.
Pooling resources and teaming up may be the best (or only) option at this point. Can Toyota help Nissan turn things around? Or will it be too little, too late? Let us know your thoughts in the comments.
Check back soon for details. This is a developing story. We’ll keep you updated with the latest.
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