Volkswagen (VW) aims to reduce the cost of an electric vehicle for the American market to less than $35,000 within the next three to four years.
At the same time, Chinese carmaker Nio said it was still “discussing” entering North America in 2025, it said at an event in Detroit organized by Reuters.
Reinhard Fischer, senior vice president and head of strategy at VW Group for America, said that they are not reducing plans for electric vehicles in the US market.
Ganesh Iyer, CEO of Nio, said things have changed regarding geopolitics, global supply chains and other factors that influence the decision to sell our cars in the US.
At the Reuters Events Automotive USA 2023 conference, Fischer said VW plans to produce an EV priced below $35,000 in the US or Mexico.
Options include VW plants in Chattanooga, Puebla, Tennessee, Mexico, and a new assembly plant in South Carolina planned for the VW Scout subsidiary.
VW is also considering localization for the battery plant to qualify for additional incentives under the US Anti-Inflation Act, Fischer said.
The German car manufacturer has previously disclosed intentions to manufacture battery cells in Canada for its present and upcoming electric vehicles produced in North America.
Volkswagen announced 11 new electric models
The company’s chief executive, Thomas Schaefer, said that German carmaker Volkswagen hopes that demand for electric vehicles (EVs) will pick up after a recent slowdown and remains focused on them.
By 2027, as a brand, they will present 11 new electric models on the market, Schaefer told the German agency DPA on the eve of the International Motor Show (IAA).
He said that although demand has recently decreased, VW will continue focusing on electric vehicles.