Volkswagen's Affordable EV for the US

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【Summary】Volkswagen plans to release an affordable electric vehicle (EV) in the US for under $35,000 within the next three to four years. The company intends to manufacture the EV in North America to take advantage of tax incentives. The specific model has not been revealed, but it is expected to be a compact crossover SUV. This commitment to the US EV market comes as other EV makers adjust their projections due to reduced demand. Volkswagen is also targeting a 2026 production window for the ID.

FutureCar Staff Nov 09, 2023 10:16 PM PT

Volkswagen is planning to introduce an affordable electric vehicle (EV) to the US market in the next three to four years. The German automaker intends to manufacture the as-yet-unnamed EV in North America to take advantage of tax incentives provided by the Inflation Reduction Act.

While some EV makers are becoming hesitant due to slowing sales, Volkswagen remains confident and committed to the electric future. Reinhard Fischer, the Senior Vice President and Head of Strategy at Volkswagen Group of America, revealed the brand's plan to develop a US-built affordable EV in an interview with Reuters.

Although the exact design of the affordable EV is unclear, it is likely to be a compact cross-over SUV, considering the popularity of this segment in the US. Fischer mentioned that the EV would be priced below $35,000. Volkswagen also intends to produce the new electric car in North America, possibly in the US or Mexico, to qualify for the US EV tax incentives provided by the Inflation Reduction Act.

"We are not scaling back plans for EVs in the U.S. market," stated Reinhard Fischer, Vice President and Head of Strategy at VW Group of America.

This renewed commitment to the US EV market comes at a time when many EV manufacturers are adjusting their projections and production targets due to reduced demand. Volkswagen is currently aiming for a 2026 production window for the ID.2all compact hatchback, which will be launched in Europe with a price tag of under €25,000. The expected European launch of the ID.2all aligns with the "three to four years" timeframe mentioned by Fischer.

So far, there has been no official announcement regarding a US launch of the ID.2all, but the confirmation of an affordable VW EV coming to the US suggests that the brand may eventually introduce the ID.2all, ID.3, or even the ID.GTI hot hatch to North American markets.

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