German FAZ: VW announces electric car for 20,000 euros006959

After a long struggle, Volkswagen has launched a project that is said to be crucial for the future of the group’s electric car range. As VW management announced on Tuesday evening after a supervisory board meeting, the group wants to develop a vehicle in the price range around 20,000 euros. The world premiere is planned for 2027. The goal is to “enable mobility for everyone and make it easier to get started with e-mobility,” it says. Recently it has become increasingly clear that sales of electric cars are not developing as hoped, also because many customers find the current models too expensive. Electric vehicles in the lower price segment are considered very demanding for the industry because the technology is difficult to cover costs is to be developed. VW had long considered entering into a partnership with its French rival Renault for the project. Now Europe’s largest car company wants to push ahead with the project on its own. Production in the Czech Republic is considered likely. In informed circles, the hot contender for the production location is the Czech Republic, where the VW subsidiary Škoda already produces at comparatively low manufacturing costs. Production in Germany is considered impossible.More on the topicVW CEO Oliver Blume said on Tuesday evening only that it was about “electric entry-level mobility from Europe for Europe”. This combines a commitment to Europe as an industrial location, to a European industrial policy and to “ultimately acting in the interests of European customers”. The communication also mentions a high degree of European localization. Long transport routes for components would be reduced and CO2 pollution would therefore be avoided. The influential group works council says it approves the decision for electric vehicles by 20,000 euros. “Especially when it comes to electromobility, the group’s aim must remain to offer entry-level models at the lower price range with its volume brands.”
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