Volkswagen is making good on the promise to introduce an affordable electric vehicle (EV) priced under $35,000 to the U.S. market within the next 3-4 years. The announcement was made by senior executives during a Reuters conference, emphasizing the company’s commitment to advancing its electric vehicle initiatives in the United States.
Reinhard Fischer, senior vice president and head of strategy at VW Group of America, reassured the public that despite changes in geopolitics and global supply chains, Volkswagen is not scaling back its plans for electric vehicles in the U.S. market. Ganesh Iyer, the CEO of Nio USA, a Chinese automaker, also shared insights during the conference, stating that Nio is still contemplating a potential entry into the North American market by 2025.
Fischer outlined Volkswagen’s considerations for manufacturing the sub-$35,000 EV, citing options such as existing VW plants in Chattanooga, Tennessee, and Puebla, Mexico. Additionally, a new assembly plant in South Carolina, planned for VW subsidiary Scout, is being evaluated as a potential manufacturing location for the affordable electric vehicle.
To further align with U.S. regulations and incentives, Fischer mentioned that Volkswagen is exploring the possibility of localizing the assembly of battery packs for the affordable EV. This move aims to qualify for additional incentives under the U.S. Inflation Reduction Act. The German automaker had previously disclosed plans to produce battery cells in Canada to support its current and future North American-built electric vehicles.
In contrast, Nio’s Iyer highlighted the importance of establishing infrastructure before introducing electric vehicles to North America. Nio is reportedly considering various partnership opportunities to facilitate this infrastructure development. The company recognizes the need for a robust support system for electric vehicles, including charging stations and maintenance services, before venturing into the North American market.
Both Volkswagen and Nio’s statements reflect the dynamic landscape of the electric vehicle industry, with automakers navigating geopolitical shifts, global supply chain challenges, and the necessity for strategic partnerships to ensure the successful integration of electric vehicles into the North American market.
Source: Reuters
