VW Making Progress in Reducing EV Production Costs

Production cost reduction equipping VW to go against Tesla...

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Volkswagen seems to be doing well in the direction towards electrification. According to a report from Bloomberg, the automaker’s head of electric division, Christian Sanger, said in Shanghai that the company has actually made “huge progress” in reducing the cost of making electric vehicles.

“Offering our electric cars for prices similar to combustion engine vehicles really is a game changer, ” said Senger. “We’re using the need to step from combustion engine to electric cars to reinvent VW brand.”

Alongside EVs set to be released under the VW brand, there is also an I.D. sub-brand being established in China, where the cars will also be partially developed. Among the I.D. models planned are a hatchback, a sedan, and a crossover.

The economy of scale allowed by VW’s MEB platform, which is proving to be flexible and can underpin any number of cars. The lower prices are equipping VW well against Tesla, which are currently working on the affordable Model 3.

With the ever growing market for EVs worldwide, forecast to 26 percent this year, the move to electrification may be a wise one for the automotive giant.

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