VW Making Huge Progress Reducing Electric Production Costs

Volkswagen’s plan to provide affordable electric cars is going well, as the company has made “huge progress” in reducing the cost of making electric cars, said Christian Senger, head of the brand’s electric division, in Shanghai.

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

Along with the electric vehicles it plans to release under the VW badge, an I.D. sub-brand is also being established in China, where the cars will also be partially developed. Among the EVs planned are a sedan, a hatchback, and a crossover.

The economy of scale allowed by VW’s MEB platform, which can underpin any number of cars. The low prices allowed by that should allow VW to take on Tesla, which is currently working on the affordable Model 3.

With the worldwide market for electric cars growing rapidly, forecast to 26 percent this year, the move to electrics may be a wise one for the world’s largest automaker.

[source: Automotive News]

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