Volkswagen AG plans to add a subcompact crossover that will cost around 18,000 euros (US $ 21,000) to the range electric vehicle I.D., which will expand zero emissions coverage which is more affordable than emissions Tesla Inc., according to people with knowledge of the subject.
Entry-level vehicles can be produced at the VW plant located in Emden, Germany, according to sources, who asked not to disclose their identities because the plan had not received final approval from the factory supervisory board. Sales will begin after 2020, and the company expects to sell around 200,000 every year, they said. That would be equivalent to the current production level of Tesla Model 3, which has a higher price, and still expands the volume.
Medium electric sedan and family vehicle named I.D. Aero can increase the production of 100,000 cars per year at the Emden plant. So far, the factory has focused on the Passat sedan and family vehicles, which in 2022 will be transferred to the Czech factory from the sister brand Skoda, in Kvasiny, according to sources.
VW declined to comment.
Production renewal, internally called the Polaris project, is part of a large-scale restructuring that aims to allocate vehicle manufacturing more efficiently in 12 VW car brands. The world's largest carmaker is trying to free funds for one of the most aggressive initiatives in the automotive industry, a reorganization funded in part by billions of euros in cross savings across groups, closer cooperation between brands and the elimination of slow sales models, accessories and color choices .
In China, VW plans to expand electric car production and expand the plant in Anting and a center in Foshan that has been selected to produce cars that are exclusively supported by batteries from 2020. In North America, VW plans to produce electric cars in the only factory vehicle company in Chattanooga, United States.
The first of the various electric cars I.D. is I.D. Neo, which will be produced in Zwickau, Germany, and which will be marketed in 2020. With less complexity and fewer model variants, VW may be able to produce cars in about half the time needed to assemble open-air golf, according to the source . VW said it would sell for the price of comparable diesel cars, which showed a price of around 23,000 euros.
The company's top executive, Herbert Diess, said in a recent interview that the company could license the new electric car technology, nicknamed MEB, to Ford Motor Co. as part of a collaboration talks between the two companies. VW also discussed the possibility of sharing technology with other car manufacturers around the world, according to the public. Collaborating with other colleagues to share costs is a change of strategy for German manufacturers, because collaborative efforts in the past have often been stalled by cultural differences.
As part of the investment drive, VW plans to build a new factory in a country in Eastern Europe such as Hungary or Bulgaria. That would make it possible to benefit from lower labor costs with an annual production capacity of 350,000 vehicles, including cars currently produced in the Skoda factory on Kvasiny but need to leave the room for the Passat.
The VW supervisory board will meet on November 16 to discuss production reorganization and related investment plans for the coming years.