Volkswagen intends to offer 25 all-electric models in the U.S. by 2030 that are eligible for the full $7,500 federal tax credit under new Inflation Reduction Act (IRA) regulations, according to VW’s top U.S. executive in an interview with Bloomberg (via Automotive News Europe).
In the same interview, VW Group of America CEO Pablo Di Si expressed optimism about the company’s prospects in the United States, stating, “We have a great opportunity in the U.S. I believe this is the right time and the right place.”
Volkswagen ID.4 built at Chattanooga
The new IRA regulations dictate that vehicles and their battery packs must be assembled in North America, and they specify the sources of battery raw materials required. VW has already committed to assembling 80% of its 25 new EVs scheduled for introduction by 2030 either in the United States or Mexico, which will satisfy one of the tax-credit requirements. However, it will need to do the same for all EVs or possibly assemble the remaining 20% in Canada, where the company recently announced an EV battery plant, to be eligible for the full tax credit.
Automotive News Europe views this as another effort by the VW Group to increase its market share in the United States. The automaker aims for its Volkswagen brand to capture 5% of the market by 2030, up from the current 1.8%, and for its Audi and Porsche luxury brands to capture 10% over the same period. Despite prior efforts, such as opening a factory in Chattanooga, Tennessee, and shifting the VW model lineup to emphasize SUVs, the company still lags behind other automakers.
Volkswagen ID.4 built at Chattanooga
The ID.4, which is presently VW’s lone U.S.-produced EV and the only model that could qualify for the $7,500 tax credit, is anticipated to compete with mainstream models such as the Honda CR-V and Toyota RAV4 as part of VW’s “for millions, not just millionaires” EV motto. VW now intends to spend $7 billion to expand U.S. EV production by introducing the ID.Buzz in 2024, followed by midsize and large electric SUVs, according to Automotive News Europe.
Furthermore, the VW Group has Scout, a new brand that plans to manufacture durable electric trucks inspired by the classic International Scout off-roader but is operating as a standalone company in America. A $40,000 electric SUV, the first Scout model, is scheduled to debut in 2024 and commence production at a new South Carolina factory in 2026.
I don’t have a personal story related to this topic, but I think it’s interesting that VW is planning to offer 25 all-electric models in the US by 2030. It will be interesting to see how this affects the market and whether or not other automakers will follow suit.
I don’t have a personal story related to this topic, but I think it’s interesting that Volkswagen is planning to offer 25 all-electric models in the U.S. by 2030. It will be interesting to see how this affects the market and if other automakers follow suit.