Volkswagen’s electric vehicle (EV) strategy is encountering significant obstacles, prompting a major reassessment of its approach. The automaker has been forced to reduce shifts at its key EV production facilities in Germany, reflecting broader issues. In China, a critical market for Volkswagen, the company is losing ground to local competitors.
This has led to new collaborations with Chinese firms such as Xpeng to regain market share and consumer trust. A major setback originated from the failure of Volkswagen’s software subsidiary, Cariad, which caused delays and the cancellation of various EV projects.
Compounding these issues, Volkswagen has halted the development of new platforms, choosing instead to extend the life of its initial and now outdated EV platform, the MEB. This has been particularly evident in China, where the competition in the EV market is intense.
In March, Volkswagen introduced the U.S. configurations for the ID.7, though pricing details remain undisclosed. Given the starting price of 57,000 euros (approximately $62,000) in Germany, the U.S. version, which will likely have more features, is expected to be even pricier.
Positioned against the Tesla Model S, which begins at $72,990, the ID.7 is anticipated to be a high-end option. Despite this, Volkswagen Group of America CEO Pablo Di Si indicated in March to Automotive News that they do not foresee large sales numbers for the ID.7 in the U.S. market. Nevertheless, the electric sedan, along with the ID. Buzz, aims to boost brand recognition and act as a showcase model for Volkswagen.
