Volkswagen intended to dominate the market with an electric car at 20,000 euros. You already admit that it is impossible

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Dominating the market with an affordable car for all audiences is a thing of the past. Volkswagen aimed to achieve this position with its Volkswagen ID. 3, the new electric Golf. He has not succeeded and neither will he with his Volkswagen ID.2. At least at the desired price.

The (new) town car. Volkswagen has the honor of bearing in its own name the “people’s car”. During its history, it has managed to sell more than 15 million units of its Beetle and more than 35 million of its Volkswagen Golf. The electric car can mark a before and after in the history of the automobile. And Volkswagen wanted to be there with its ID.3, a car that has always been sold as “the new Golf”.

However, the German firm had been pointing to 2025 as a vital year in its future. The launch of the Volkswagen ID.2, an urban model for less than 20,000 euros, would have to convince all those who claim that the electric car is still too expensive and inaccessible. Ultimately, this will not happen.

“Girl, what do you say?”. This, but with other words, Thomas Schäfer, the new head of Volkswagen (after the departure of Herbert Diess), has responded to the German medium electrified. “If you look at the price increases, you can quickly go from the desirable €20,000 to €25,000.” That is to say, the smallest of the brand’s electric cars, which should occupy the position of the Volkswagen Polo, will cost more than the current combustion version.

Right now, the most basic Volkswagen Polo is priced at €21,860 but the Germans aspired to position it even below. According to Schäfer, this will not be possible due to rising raw material costs. Costs that have skyrocketed and are causing models like the Ford Mustang Mach-E to no longer be profitable.

One more nail in the cheap car coffin. The electric car is faster and easier to build, its mechanics are simpler and it has fewer components. Manufacturers claim that factories have too many people because they will be assembled faster. And, at the same time, they will be more expensive.

Rising raw material costs is just one more reason. Herbert Diess has known firsthand the importance of software in current models and those to come. Volkswagen plans to dedicate 3,000 million euros to it in just over three years. And the European Union is indirectly making vehicles more expensive with new safety requirements.

They don’t care either. And neither do the manufacturers seem to be particularly concerned about this general increase in the price of the product. In 2021 they reached record profit levels and Arno Antlitz, financial director of the Volkswagen Group, expressed it to the Financial Times newspaper.

Volkswagen already knows the price of manufacturing its own batteries for the electric car: too much

During the presentation of the results of Seat, Wayne Griffiths, president of the brand, already warned that Cupra, now with its own entity but which was the sports line (and more expensive) of the Spanish firm, “it is the future”. Volkswagen has also made it clear that dozens of combustion engines they will miss out on the electric car, in a strategy shift that aims to manufacture less and earn more with each unit.

Dominating the market with an affordable car for all audiences is a thing of the past. Volkswagen aimed to achieve…

Dominating the market with an affordable car for all audiences is a thing of the past. Volkswagen aimed to achieve…

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