Volkswagen hopes to replace Tesla's premium Model Y powertrain by offering the Volkswagen ID.4 at a lower price.
Volkswagen, the US subsidiary of Volkswagen, unveiled its ID.4 electric sports car and its pricing strategy aimed at opening a new front in competition with Tesla Inc and other automakers .
The ID.4 driving range is less than Tesla's Model Y electric SUV, which offers more than 300 miles (483 km) between charges.
But Volkswagen hopes to make up for that by offering the ID.4 at a lower price than Tesla's Model Y. Customers can benefit more from federal and state subsidies for electric vehicles for which Tesla is no longer eligible.
The ID.4 will initially cost $ 39,995 and will be around $ 5,000 less expensive once the company begins building it in the United States, Volkswagen said.
By comparison, Tesla's Model Y is priced at $ 49,990, the Model X SUV is $ 79,990, and the cheapest Model 3 sedan is $ 37,990. Tesla CEO Elon Musk said Tuesday that he aims to build a $ 25,000 electric vehicle, but is still three years away.
The ID family is an integral part of the Volkswagen brand's ambitious plan to produce 1.5 million electric cars a year by 2025.
In the US market, ID.4 is also aiming to put Volkswagen back on the shopping lists of consumers who have been turned off by a fraud scandal. On the brand's diesel emissions.
Scott Q, president of Volkswagen of America, told Reuters that the ID.4 will be the first electric compact SUV that can sell for around $ 35,000, aiming for a large segment and the average price level of cars sold in the US market.
"We want volume," said Q.
In addition to three years of free shipping on their Electrify America network, Volkswagen dealers will be able to offer ID.4 for thousands of dollars less than the Tesla Model Y.
"We wanted to make sure we not only had enough reach but that we had the right price," Q said.
The ID.4 version will also test US Volkswagen dealerships, The automaker asks them to invest in charging stations and other infrastructure and is trying to develop the ability to sell electric cars online.
ID.4, which will be assembled in the United States beginning in 2022, is part of a family of electric cars that is expected to include a replica of the iconic Volkswagen minibus.
"I want an army of volunteers, not an army," Keogh said, describing his message to merchants at a meeting in Chattanooga, Tennessee, last November. He said that almost every Volkswagen dealership in the United States had agreed to make the necessary investments.
John Luciano, president of Volkswagen's American Dealership Council, said dealerships that benefit from the automaker's subsidies for advertising costs can offset investments in charging infrastructure and other equipment.
"If you really care, you can do it at almost no cost," said Luciano, owner of a Volkswagen and Toyota store in Amarillo, Texas. "How much am I going to sell? I don't know," Luciano said of the identification. "We have received calls for years about the van."
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