VW I.D.3 (Neo) Pricing Leak? Launch Strategy To Follow Tesla

Volkswagen will lead electric car investment

MAR 1 2019 BY MARK KANE 58

Volkswagen to mimic Tesla’s product launch strategy

Handelsblatt’s EDISON magazine recently interviewed Christian Senger, Volkswagen‘s Head of the e-Mobility. The interview revealed interesting stuff.

According to Senger, Volkswagen at first will introduce a top of the line version of the I.D. hatchback (I.D.3) with the biggest battery and well equipped. Such version will be presented at the Frankfurt Motor Show in September with a range of about 550 km (342 miles), 150 kW electric motor and a top speed of 180 km/h (112 miles). Price of the I.D. will be around €30,000.

Those who opt for more affordable versions will be required to wait 1.5-2 years for the base model, rated at some 330 km (205 miles) of range that would cost €24,000.

Interestingly, the numbers are in-line with previous expectations:

  • about 48 kWh battery (base)
  • some 330 km (205 miles) of WLTP range (base)
  • some 450 km (280 miles) of WLTP range (higher version)
  • up to over 500 km (311 miles) of WLTP range (top version)
  • 7.2 kW or 11 kW on-board chargers
  • 125 kW DC fast charging capability

Assuming that the first I.D. will be produced in late 2019, and first deliveries will happen 2019/2020, we could expect the base version by the end of 2021.

In such a way, Volkswagen will have a similar strategy to Tesla – to launch the most profitable version at the beginning and then spread the product line down (and sometimes also up).


The Volkswagen I.D. CROZZ is to follow I.D. in September 2020 (in Tiguan format) and in mid-2021 (in coupe-like version). The I.D. BUZZ is expected in 2022.

There are also plans for a smaller model based on the MEB platform, but Volkswagen is aware that it will be difficult to make such an EV profitable:

“”The answer is a definite yes, a city car would be the logical continuation, because the cheaper the price, the greater the number of buyers We therefore also want to offer vehicles below the first model.” However, it will be a challenge to “economically represent an electric car below the Golf segment, which is not easy.””

Hat Tip to our reader!!!

Source: edison.handelsblatt.com

Categories: Volkswagen

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58 Comments on "VW I.D.3 (Neo) Pricing Leak? Launch Strategy To Follow Tesla"

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VW ID.3 is clearly in the right size for Europe. Golf is the best seller there by a wide margin.
Very good strategy to counter Tesla with a different offering.

I think the I.D. 3 is a perfect size – for me! I live in the US, and I reeeeeeaaally hope that VW brings it here.

Same here

Don’t hold your breath.

Americans cant be that stupid to support this cheater?

No, Senger didn’t say this in the interview, that was just added by the author.

It was also already denied by a VW engineer in a German EV forum: https://evw-forum.de/index.php?thread/3256-vw-id-3-kommt-im-m%C3%A4rz-2020-g%C3%BCnstige-version-aber-erst-2021/&postID=60108#post60108

It will start with the 62 kWh and 48 kWh battery size, the bigger 83 kWh battery will come later (probably 2021).

Yes, but putting “VW follows Tesla” as a headline sounds better, doesn’t it?

So the lower range would be about $27k plus you could get the federal tax credit? So down around 20,000 if you don’t go crazy with the options. I’ll take one bring it to United States please.

No point in even looking, it won’t be sold in US. Point of pricing in US is to bring ID Crozz (I.D.3.x?) to the US first as it is likely a higher margin vehicle, so they can price it up for tax credit. I wouldn’t expect anything too low priced here until tax credits are used up.

Well as much as I would like to get one right away my car only has 16000 miles on it so I could wait. I know they’re not bringing it here right away but my hope is that they will make all of them and numbers and that the ID crozz or whatever they hopefully change the name to will use up most of those credits and then they will bring this to United States. I realize that buying this lower-priced car without the tax credit would probably be similar in price to the ID crozz with one but to be honest unless I see it and it really Knox my old socks off I’m more interested in the hatch than the SUV crossover.

Should have been possible to import one, if it was not a lot of extra work with charge ports, radios and what not.
The extra work would not make it worth while..
To ship a car across the Atlantic is not that expensive. All the extra work would be though..

The difficulty as far as I can tell is in the event something goes wrong, you’re in a potentially tricky situation. I would love to import a Polestar 2, but what if there is an issue with the battery or motor or any component that a regular mechanic can’t sort out? Or is there some way around that?

And the 24,000 EUR include 19% VAT. So it would be $23k or $15,500 after the tax credit.. Unfortunately not coming to the US. I assume the Crozz will also be priced very competitive though.

Indeed, a missed opportunity by VW. They will sell a tone in EU…maybe that’s the reason for not bringing it here.

How is selling the car where it would sell a ton of them a missed opportunity?

Is it the same thing to sell a ton or a ton and a half?

Well I’m sure you know better than they do what sells well where. Or maybe instead if trying to sell a half a ton of the hatch they’d rather sell 3 tons of the crossover version

I hope they bring it in the future to the US. But indeed with these prices they will sell a lot of them here in Europe.

If things go according to VW plans – they would sell a certain number in Europe that match their battery orders.
I also think it is a missed opportunity, just like low production numbers have been for Hyundai and KIA for example. Even though this car type does not sell well in the US, I think they could have sold a healthy number, making it worth the extra work and transportation costs.
Logistics wice, it’s better for them to sell the US made EV.. but it will come a bit later, and it would be more expensiv.
Price is important for EVs too.

If the prices will be indeed that low and Volkswagen is able to scale up the production to meet the demant, Leaf will be blown away. At least unless Nissan slashes its price by half.

VW seems to be the one legacy company that is seriously going to get into the EV game. I like the ID3 and wish they were bringing it to the US. An AWD version of the ID3 would be about the perfect car. I find hatchbacks way more practical and the larger cross-over doesn’t really appeal to me.

Same here, my wife has a 2018 Honda CRV with AWD ( basically a big hatchback) which is nice if we ( wife, son and I) go on a trip but I prefer my 2016 Golf for daily driving and at 6’2″ I have plenty of room. I imagine if past practice is anything to go by the interior will get nicer than the Leaf. The price point is very important as unlike Tesla VW gas to compete with their own ICEV’s on the lot.

Here comes the “TESLA Killers” about 3 years to 5 years late..LOL

Another Euro point of view

No, the Tesla killer was actually revealed yesterday by Musk himself.

Another Euro point of view

Actually they seem to come in different forms as Model S and Model X prices were slashed down hugely. Model S P100D down from Eur 160k to Eur 110k in the Netherlands. Dutch Tesla followers thinking it could be a mistake on the site. Maybe, I hope for the sake of Tesla and mostly for the sake of Tesla employees.

That was a huge price cut. Could be good though, as Model S and X sales are low. They have probably paid down all the production equipment and tooling costs – and now it will be profitable to sell the car for as long as possible, even though they have to sell it cheaper. The production would now be a normal routine, and they have probably reached the most economical and quickest way to assemble the vehicles. With lower prices more EVs will be sold, and they can keep production going. With more vehicles on the market they will also make more money on parts (crashes and repairs), and also some on maintenance.

Another Euro point of view

About fully amortized tooling, that’s a very good question actually. As I understand you work is about automation you are certainly more knowledgeable than me on this topic. Being an accountant I know that the amortization principle is the same everywhere, that is amortization duration corresponding to life cycle of your assets. For example for a ship or a building it will be 20 to 25 years, for computers only 3 years. Having no knowledge of the life cycle of an automotive robot I made a little research, did not find any info about Kuka robots but found about the Fanuc robots, equally widespread apparently. Articles found points to a typical life cycle of 10 years. But indeed I have no doubts that productions costs were lowered since those cars were first produced.

How did Tesla S ever get the 160 K € price. That is an absurd high price.

Special tax treatment from the euros….

Prices in Europe are stated including VAT (in Germany 19%, in NL or Nordic countries even higher). Also there is an import duty of usually 10% for finished cars, which Tesla was avoiding, by importing as CKD and did final assembly in NL at least for ‘S’ and ‘X’.
Most costly variant in Germany was X100PL for approx 150k Euro without extras — which is now offered renamed as model-X LR PL for just 98k Euro.

First of all I don’t really recall Volkswagen mentioning the phrase Tesla killer at least not in recent memory. That’s almost always coming from some Tesla fanboy he was heavily into the persecution complex

No, it comes from the media, watch CNN, FOX or NBC and you will see they are always trying to use it.

Ya “fake news” eh?

An electric golf type for 30k euros with more than 500km of autonomy and more than 150kW of power? Count me in!

“Such version will be presented at the Frankfurt Motor Show in September with a range of about 550 km (342 miles), 150 kW electric motor and a top speed of 180 km/h (112 miles). Price of the I.D. will be around €30,000.”

550 km range for around €30,000.- would be great. But I suspect that it will be more like around €40,000.-

Just another compliance car

accurate username

Did you miss their roadmap for Ev’s?

Well VW is so all over the place. A few months ago it was we will build an ev half the price of a Model 3, to, it will be a challenge to build an ev cheaper than the golf, and make it economically viable. Talk is cheap and VW is certainly doing a lot of that, though they are not very coherent or focused with their message. I don’t really see what they can do with half a million diesel cars rotting on lots around the world. Few takers for their new suspect, compliant, diesels, and a downturn in auto sales the likes of which has only been glimpsed before, it’s not something that gives credence to the latest announcements from VW, concerning their coming ev products. Also the prospect of tariffs from Trump lingers like a dark figure, in a blind alley, maybe he’ll club you, and you can’t run away, you have to go past him, to get to your destination. Knowing Trump he will let you walk by, and then bash you from behind. I imagine we will a see a lot of plant closures, lay-offs, and other strategies employed when a downturn hits, but they… Read more »

First of all the reluctance to buy new diesels only encourages VW to go more heavily into EVs. Second of all VW plans to build mist of the EVs for the United States in the US so no potential tariffs. Third of all building a BEV cheaper than a Golf is a challenge at this point in time

The world is a lot larger than the USA.

Is that for me? If so I was responding to his comment about tariffs, if not ,cheers!

They never said that they will build an EV half the price of a Model 3.

Sure they did. Even mentioned that it would be comparabel to the 3. turned out they meant a kind of electric UP! Instead.

They didn’t.

The small e-Up is already basically half the price og a model 3. Not that the cars can be compared, as they are for different market segments.

ffbj. . I think you have to get news and facts from several sources. They basically have one path they follow, but many do not realize how large the VW group is. They have like 300 models, and produce 3 concept classes. One type to test new design languages. There will never be a car like that, but they may produce a production model which feature some of the design language (usually toned down). There will be a technology model. There will never be a car like that either, but they may use some of the tech for a production car. Then there will be a model that may resemble an actual model, that they may show to see what kind of feedback they get. They may produce this, or make some changes and show it again. Then the vehicle will go through a team of production engineers and bean counters that will find the best way (for them) to manufacture the model. When they said they will go for an electric future – we’ll see a massive change. The VW group will by next year show a new electric model almost every month. They still sold about as many… Read more »

“it will be a challenge to build an ev cheaper than the golf, and make it economically viable”

They already do that. The VW E-Up. Not really a dream car, but small and practical and seats 4 people. Typical used by communes, home service assistance where most is city driving. The size of the car makes it easy to park.

Silly question. They fired all the sales people for Solar City and opened up displays in Lowe’s. Then Tesla stopped that because of margin and said from now on the Tesla stores will be the one stop shop for cars, energy storage, and solar. So who is going to be selling that stuff now? Or is Tesla slowly backing away from solar panels? I think that Mr Musk likes the bold stroke, but the practical outcome of ‘no sales at stores’ is probably not as big of a shift as people are thinking. I suspect for the most part, you’ll still get to go and shop at whatever the facility is called (maybe fewer per city), but there’s nobody there getting a sales bonus and the transaction is consummated via an app or website. Probably even would have order kiosks. There’s a medium sized community bank I know that is expanding rapidly this way. They got rid of money. Yep. There’s no money at all in the bank. No cash drawer even. There are kiosks and a couple loan officer types. You can discuss getting a loan, apply for a loan, get the loan, but everything is done electronically and… Read more »

Yeah but to me buying a car is a lot different than a set of speakers I’m getting from Amazon or something that are much easier to return. With an expensive car I’m probably selling my old one to use as a down payment, I’m transferring my insurance over registration all that then when I get the car I have a week to decide if I really like it as soon as I haven’t test-driven it yet then I got to send it back and find something else in switch all that stuff over again? I know a lot of people might buy Tesla’s online but I wonder how many of them went to the store first and test rogue one?

24.000 € is a nice price. And Seat version should be even cheaper. So, what can we expect form other makers like Nissan, Hyundai or Renault?. Model 3 is a bigger car so higher price is justified, but other rivals are more similar to the ID3 and quite more expensive at only few months from the ID3 launching. If that price is true may produce important effects in other cars. Who wants to buy an EV today if probably the price of many EVs will decrease a lot in less than a year?.
We must see tariffs lowering from now.

It is interesting indeed. I have a Zoe from last year which I could buy for a bargin. But the lack of CCS is a big downside. For now it really suits our needs but with a new Zoe coming I would like to know the price. This VW looks nice and the price is really good. Renault/Nissan will have a hard time deciding what to do next if VW is indeed asking these prices.

Maybe VW should bring it to the US. The mantra that there is no customer base in the US might be a self fulfilling prophecy and a small EV could maybe break this cycle. How cool would this be to see in metropolitan areas.

Just look at the Leaf sales in the US.

I remember a time when everybody was crying: bring the Outlander phev to the US.

What is the smallest good selling car (EV / ICE) in US? How well does Ford Fiesta sell? Smart for2? Toyota Yaris? VW Polo? Mitsubishi I-Miev? VW Golf?

3+ years until the most interesting and useful of the bunch the iBuzz…. BOOOOOOO!
Come one VW you’re big enough to release more than one new model per year.

agreed … waiting anxiously for the Buzz … may even break my “never buy first year” rule.