VW Unveils New Global ID.4 Electric SUV; American production starts in 2022

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Volkswagen unveiled the new ID.4 electric SUV on September 23, 2020 – the brand’s first long-range electric vehicle to be sold in the United StatesVolkswagen

Volkswagen AG will leverage its global footprint to cost-effectively produce a new all-electric SUV called the ID.4.The vehicle, which will be produced at five factories on three continents, is targeting mainstream buyers, starting at $ 39,995 when it hits U.S. showrooms early next year. The price excludes a federal tax credit of up to $ 7,500 for the purchase of electric vehicles.

“It truly is a breathtaking global car,” said Scott Keogh, CEO of Volkswagen Group of America, during a press briefing ahead of the vehicle’s online reveal on Wednesday. “I think the benefit of that is that it gives us a huge amount of scale effects that we need, which of course gives us the pricing power and we see a very strong correlation between pricing and adoption. electric vehicles.

The ID.4 will be imported from Germany to the United States until local production begins at a VW plant in Tennessee in 2022, the company said. The price of the vehicle is expected to drop to around $ 35,000 when domestic production begins.

Volkswagen unveiled the new ID.4 electric SUV on September 23, 2020 – the brand’s first long-range electric vehicle to be sold in the United States

Volkswagen

VW will produce ID.4 at two factories in China and two factories in Europe in addition to the United States

Keogh said global production contributes to scale and profitability – an ongoing challenge for the auto industry with electric vehicles.

“We have a positive contribution margin and profit on these cars,” he said. “We’re not yet where we want to be in terms of battery cost, but certainly in a great and better and better place. ”

Batteries for electric vehicles are extremely expensive but the costs are decreasing. Keogh declined to disclose the cost per kilowatt per hour, a common industry measure of the cost of electric vehicle batteries, of the ID.4 battery.

Unlike many automakers who are launching vehicles to compete with Tesla – the leader in the electric vehicle industry – VW targets the car to mainstream consumers who may be new to electric vehicles.

VW, which opened online reservations for the ID.4 on Wednesday, compared the compact SUV to the Toyota RAV4 and Honda CRV rather than current EVs from Tesla, General Motors and others.

Volkswagen unveiled the new ID.4 electric SUV on September 23, 2020 – the brand’s first long-range electric vehicle to be sold in the United States

Volkswagen

“Our real goal is to drive adoption and move ICE drivers to electrification,” Keogh said, later adding that it was a balance between price and range. “We know adoption is directly related to price. ”

The range of the car is estimated at 250 miles. It’s comparable to GM’s similarly priced Chevrolet Bolt EV and entry-level Tesla Model 3, but well below other Tesla models.

The ID.4 will initially be available in rear-wheel drive at 201 horsepower and 228 lb-ft of torque, followed by a 302-horsepower all-wheel drive version later in 2021.

“We obviously want this car to be successful and we want this car to get to scale,” Keogh said, refusing to provide exceptions for US sales.

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