VW Wants To Build A Sub-$23,000 Electric Car—Should It Worry GM?
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VW has emerged guns blazing as a major rival in the electric-car segment. It hasn’t yet launched its first electric car, but it plans to roll out the vehicles at a large scale in the next few years. The latest model that could threaten GM? An incredibly cheap EV that could cost under $23,000.
Reuters reported on Thursday that VW has plans for an incredibly affordable electric car in the works. Executives have thus far referred to the car as “MEB Entry” for now, and the targeted price point is under 20,000 Euros, or about $23,000 USD. MEB is VW’s dedicated and scalable electric-car platform, which the automaker believes will help it achieve great synergies in EV production.
VW is reportedly so serious about the affordable electric car that it may convert three factories to handle production of the car. There’s no word on which plants it has in mind, but the original report claimed VW will discuss the model at its upcoming board meeting on November 16.
It’s also unclear if VW imagines the price point before or after any incentives of tax credits, but we imagine the price does not include any credits. If VW does succeed in launching an electric car at a $23,000 price, the car would be eligible for $7,500 in credits here in the United States. A $15,500 price tag would look very appealing to many shoppers and could move more consumers into electric cars. We have a hard time believing VW could turn a profit on such a car, but perhaps the MEB platform holds the secret.
In comparison, the Chevrolet Bolt EV starts at $37,495 before any tax credits. And GM will soon lose its federal tax credits, perhaps as early as the end of this year. The tax credits will phase out after GM sells 200,000 qualifying cars, but the automaker has already pushed the federal government to expand them. Three proposals have been introduced in the U.S. House of Representatives and the Senate to modify them in some form.
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Volkswagen, being as large as it is, only survived the Dieselgate Scandal because of how much cash it has on demand. It’s a behometh. Also, with that being said, VW is much larger automaker than GM, and can therefor scale production much faster, and run prices down just as fast as well. If VW releases their upcoming Electrics NEO in 2020, with moderately good specs, and range, expect GM to be completely hopeless if their offerings do not come close to 25k.
100mile max range if that is their target price
Yes. But not because of the price.
Because GM is lazy and, even though it has committed to release 20+ cars within a short time span, nothing seems to happen on the EV front.
It built a lead in the domain but it seems its inaction is about to prove all of this was a smoke screen.
WAKE-UP GM!
GM should get it together and not be asleep at the wheel. They should have beat others to the punch and already been there with one.
huh? so you think gm should’ve found a way to cut battery costs in 1/2 by now?
Well before we condemn GM and praise VW you need to see just what VW has coming.
Keep in mind VW could also be targeting more Euro markets vs American with a very small car with a smaller battery that may only do 100 miles.
With electric you get what you pay for.
With the volt and bolt in production for some time now, all of that tech should be in nearly every car and truck now. The Bolt also needs to get it’s price down into the 20’s somehow. No reason for it to cost as much as an entry level model 3.
And you have seen how many “entry level ” model threes?
They are now building 38k model 3’s. A bolt is not on quite the same level. At 30k it would be perfect all in, but it’s not.
I would like to see GM manufacture and own huge fleets of driverless electric taxis. Generally the taxis should provide at least a modest level of comfort and so be a bit more expensive to manufacture. Can inexpensive electric cars even have a future?