VW Says Its Electric Cars Will Be Priced Comparably To Diesel

OCT 9 2018 BY VANJA KLJAIC 89

Volkswagen aims to make “electric vehicles for millions, not millionaires.”

Volkswagen is on the offensive. The German carmaker is both trying to move into the electric era, but also, to clean up their name after the dieselgate scandal both filled up the headlines and hurt the company financially. And according to recent statements coming from Wolfsburg, they are fully committed to the electric future. However, the company aims to make “electric vehicles for millions, not millionaires” with its next-generation EVs.

What is definitely a genius tagline, ultimately means that the German carmaker is aiming to make electric vehicles that fit into the price range of most households. While producing electric vehicles today – mostly due to R&D and other related costs – is expensive, everyone agrees that the price will substantially go down once economy of scale hits. For Volkswagen, their new modular electric platform (MEB) will hopefully allow them to produce up to a million EVs a year by 2025 – as revealed by Thomas Ulbrich, the member of the VW Group Board of Management responsible for e-mobility.

Ulbrich spoke at an event last month where he revealed the company aims to produce vehicles priced at the level similar to that of a comparable diesel car. That would mean that VW turns away from the old, ugly and polluting technology (that once put them on the wall of shame) and turn towards cleaner, more eco-friendly electric propulsion systems. If they can manage to do it in the price range at which they sell their current cars, success will undoubtedly follow suit.

“And then we are sure we can convince millions, because then it is no longer a price range for special customers,” said Ulbrich.

Prior to the dieselgate scandal, Volkswagen had rather compelling and attractive prices for their diesel models. For example, a 2015 Volkswagen Jetta 1.8T SE started at $19,815, while a 2015 Jetta TDI SE started at $24,895. If we dived into the SUV (Sports Utility Vehicle) side of the market, VW offered the Touareg at $45,615 for the gasoline model, while the TDI started at $53,155. If they can produce electric vehicles, similarly priced to these models, it would become highly important for everyone else to follow suit, further knocking down EV prices.

New Volkswagen I.D. CROZZ

Volkswagen is set to release the first EVs in the U.S. in 2020 with the ID hatchback and ID Crozz crossover, and then in 2022 with the much-anticipated electric take on the Microbus. Further future models are to follow, with hopefully a properly made electric version of the VW Golf with substantial range, coming in the following years as well. For VW, the future is clearly electric. Now it just remains to be seen how far can they advance their models and at which price point can they sell them to make a profit. And that will undoubtedly decide their faith in the following decades.

Source: Green Car Reports

Categories: Volkswagen

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89 Comments on "VW Says Its Electric Cars Will Be Priced Comparably To Diesel"

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TM3x2 Chris

VW, they are always 5 years away from producing great BEVs at fantastic prices.

Link

No, they are 1.5 years away.

John

They keep saying that every 1.5 years.

Link

Let’s fact check that. They revealed the VW ID lineup in 2016. Did they claim they will be released 1.5 years later? That would be 2017/2018, right?

=======
REVOLUTIONARY VOLKSWAGEN I.D. ELECTRIC CONCEPT CAR MAKES ITS WORLD DEBUT AT THE PARIS MOTOR SHOW
Sep 29, 2016

The I.D. concept car will become the first Volkswagen built off the Modular Electric Drive kit (MEB). It is due to go on sale in 2020
=======

Source: https://insideevs.com/volkswagen-d-paris-motor-show-photos-videos/

Nope, they also said 2020 back in 2016. Nothing has changed, they are right on schedule.

Kind of funny, the closer we get to a major expansion of the EV sector the more nervous and even desperate some people here seem to become. It’s almost like they aren’t really that interested in EVs in general to succeed…

TM3x2 Chris

Dude, not sure why you are such a committed VW supporter. Haven’t you noticed that all they are good at is producing tons of concepts and nothing tangible otherwise.
Let’s see what happens in 2020, my prediction is that VW will still be a few years from producing a truly great BEV for the masses.

Viking79

Whether you like VW or not, they have been consistent on ID production since the concept was introduced. Yes, they have also shown many other concepts that might never get made, but with the ID line they have been consistent. The ETron Q is in production now too. Taycan is still on schedule.

JAYDEE

Have you not been noticing that they have always targeted 2020? So what’s your point? Tesla cult is the worst…. You guys keep screaming rEVlution…but only when it is a pro Tesla article

wavelet

Not quite.
More than a year after the PR that you quote, in Dec. 2017, VW announced that the first ID-series car would launch late 2019.
https://insideevs.com/100-weeks-from-now-volkswagen-will-start-production-of-the-first-i-d-model/
They recently delayed that to early 2020.
https://insideevs.com/volkswagen-electric-car-delay-id-hatch/

Now, I don’t think this matters, but if you insist on being pedantic, get things right.
The real truth of the matter is “launch date” is just noise. What matters is when the vehicle will be available for widespread sales across multiple markets. This holds for VW just as far as it holds for Tesla (I still won’t consider the Model 3 an “available” car, until all major variants are available in the major markets).

Magnus H

Production 2019, available 2020. They’ve said that for three years now.

Jaimie

Should be great news but im afraid reality will strike hard. No offence, just look at Jaguar, Nissan, Hyundai. Car is allready on the market but cant/ wont produce sufficient numbers. Waiting times several months.

AzzyLand

Like Tesla? We will see…

Link

That’s why they are waiting for 2020, to build up the production capacity to actually mass produce the car. It’s not going to be a paper launch, it’s not going to be a dozen hand-made cars sold to their own employees. VW doesn’t work like that.

John

Not the case. At least not for myself. I’m a HUGE proponent of all things EV, not nervous, not desperate. Anyone here who pays half attention would know that. What I get frustrated at are companies that talk big and continue rolling out “future” ideas. I don’t keep a ledger like you, but I’ve been seeing “3-5 years” every year for the last 3-5 years. VW ain’t the only one who plays kick the can.

Deliver and shut folks like me up. I welcome it!!

DrDauger
In September 2013, VW had big plans to be the leader in “electric mobility” in 2018. Today, 5 years later, in September 2018, who is the leader? Do you have to wonder why so many of us are skeptical of VW’s announcements? What happened to Winterkorn? ______ VW’s press release in September 2013, for the Frankfurt Auto Show: Volkswagen launches bold offensive for age of electric mobility Group sets sights on market leadership in electric mobility by 2018 Multi-billion investment in new technologies, 70,000 employees trained Initially choice of 14 electric and hybrid models by 2014 Winterkorn: “We are starting at exactly the right time” Wolfsburg/Frankfurt am Main, 09 September 2013 – The Volkswagen Group has set its sights on global market leadership in electric mobility. “We are starting at exactly the right time. We are electrifying all vehicle classes, and therefore have everything we need to make the Volkswagen Group the top automaker in all respects, including electric mobility, by 2018”, Prof. Dr. Martin Winterkorn, CEO of Volkswagen Aktiengesellschaft, said on the eve of the 65th International Motor Show in Frankfurt am Main. Initially, a total of 14 models from several Group brands will be available with electric or… Read more »
Pushmi-Pullyu

“Nope, they also said 2020 back in 2016. Nothing has changed, they are right on schedule.”

Well, VW has put out so many fake claims about putting EVs into production, and so frequently, that it’s not surprising you can find at least one that has not been proven false… yet.

But let’s go back a bit further. The prototype VW 1-litre concept car was shown to the public in April 2002. At the 2007 Frankfurt Motor Show senior VW exec Ferdinand Piëch claimed the car would be available by the end of the decade. This was followed in 2009 by the L1, and in 2011 by the XL1.

VW made repeated claims for each of these prototypes that it would be put into production. To my utter astonishment, after so many lies, VW actually did put the car into production in 2013, altho with the intent to produce only 250 units.

Of course, nobody would claim the XL1, a product of extreme engineering for fuel efficiency at the expense of everything else, is an “electric vehicle for millions”. I think that would be too obvious a lie even for VW’s marketing department.

Al D

Expect the ID to be in production before the end of 2020. Also expect a long waiting list if they plan on pricing it that low.

David H

You misspelled 1.5 years

jelloslug

And it 1.5 year, it will be another few years away.

amt

It’s Hard to Believe anything that VW says anymore , So far VW Has Not Delivered on a Single EV One of their Many EV Promises… I Have Many Questions Pertaining to VW..

Link

They have been saying 2020 for years. It’s 2018 now.

Is there something I’m missing or why are you mad at them for not already having delivered cars that are supposed to be delivered in 1.5 years? What?

TM3x2 Chris

Yes, what you are missing is the history of broken promises by VW. I bet in 1.5 years they will find an excuse to postpone the delivery by another few years.

ab

I know many people have good reasons to distrust VW but this is getting ridiculous. They delayed the launch of the I.D. line by a few months at best; these cars are coming more or less on schedule. People say VW is just creating concepts, but it seems to me that they have built 5 concepts only: Neo, Buzz, Buzz Cargo, Crozz, and Vizzion. Each one represents a specific car that is coming in 2020. They have put far too much effort into this and released too many concrete plans to just say, “Haha PRANKED” once 2020 rolls around. Skepticism is one thing but the anti-VW cynicism is going a bit too far.

ab

Yes, but were there every any concrete, announced plans to build those which later fell through, or were they just vaporware? They were vaporware. However the current crop of ID concepts are currently on track to be actually built at a set date with battery contracts signed. Enormous difference.

Pushmi-Pullyu

Looks like you need to re-read the story of “The Boy Who Cried Wolf”, because clearly you didn’t get the lesson most of us learned in childhood.

Link

They haven’t delayed aynthing. Not by a few months, not even by a few days. They are right on schedule.

But you are wrong, only the Neo and Crozz are coming in 2020, Vizzion and Buzz are slated for 2022.

David H

How much are you willing to bet?

Pushmi-Pullyu

I’m astounded that this comment got 29 downvotes. 😯 It is completely on target.

Looks like at least 29 readers here need to read the comment from DrDauger, above, to see actual documentation of one of VW’s many, many previous broken promises about putting a wide range of EVs into production.

Mark.ca

BS!
It was 2019 for years!
You wanna know how I remember that? My lease on eGolf expires that year and i was counting on them to bring the small ID by that time….so much for that! Now they say it will not come at all.

rabatjoie

The ID was the only model that they postponed the release date of. they said late 2019 and now it’s early 2020. Other than that, they have never promised anything else than a 2020 date.

Link

There was no delay, they always said production in late 2019, delivery in 2020. None of that has changed despite the false, unsourced claim by InsideEVs a few days ago.

Pushmi-Pullyu

“The ID was the only model that they postponed the release date of.”

Clearly you have not been paying attention.

Rolando

VW groups timing is : production starts 3-4 month BEFORE first deliveries.
Like the Audi-Etron-55 from VW group : production was starting the first week of September and first deliveries in their home market Germany will be Dec-2018.

So no delay but just a mix up of terms about ‘introduction’ , ‘production start’ and ‘first deliveries’.

Magnus H

Do you have a source for that? Two years ago they said sale in 2020.

Mark.ca

google it for 2016-2017 unupdated articles.
Here is one…
https://www.carwow.co.uk/news/vw-id-price-specs-release-date-3841
“On sale in late 2019”
Not sold in US so don’t care anymore…

Bart

Note that these diesel prices reflect a higher level of content, beyond the diesel drivetrain so this is not exactly a well-described price comparison. BTW thank you VW for subsidizing my Model 3 with your settlement for my TDI. I’m skeptical about when you’ll reach your EV goals, but expect the vehicles when they arrive will be desirable. More cars, fewer press releases please.

REXisKing

Contrast this to BMW Exec panic about EV pricing.

Link

Why haven’t you posted a correction and an apology about falsely claiming VW delayed their first MEB car a few days ago?

Do Not Read Between The Lines

Maybe because it costs extra time and money to do things right, but they only care about making money, and not the consequences of their errors.

Tronald Dump

Exactly! They said they were gonna ”look into it”, yeah, right…

Nono13

I’m only a reader of insideevs for a few months. 6 at most. At first I thought it was not a pro Tesla / anti any other EV site, contrary to electrek. But recently I have my doubts.

Link

It mostly isn’t, unless when it is. (Mostly when they publish articles from Tesla fansites.)

I’m mainly here because they have the best sales stats and analysis for many different countries, most other EV sites only publish sales regarding Tesla and usually only for the US.

F150 Brian

I’d like to see a cost breakdown to see how anyone is going to get to cost parity with ICE vehicles.
Does that include gas/diesel savings using that fuel @ $5/gal and electricity @ $0.05/KWh?

William

The savings breakdown, from ditching dirty demonic diesel, is realized from having to take fewer trips to the lung soot removal and oncology clinic.

A bunch of monkeys in New Mexico, will vouch for the above stated overall benefits, as they were left, holding the bag of lousy lab test consequences.

There is also a few cents per mile savings, from using an EV plug, YMMV!

https://www.google.com/amp/s/amp.theguardian.com/business/2018/jan/29/vw-condemned-for-testing-diesel-fumes-on-humans-and-monkeys

Vexar

Thanks for the link. I thought you were kidding about the monkeys. Who owns monkeys and says “go ahead, gas ’em!”?

amt

Not Doing A Breakdown , But , They’ve Been At Parity For Some Time Now . Big Auto Are a Bunch Of Cry Babies & Will Find All Sorts Of Excuses to “Not Build EV’s” Because EV’s Have 0nly 200 Moving Parts As Opposed ICE That Have 2000 MP. This Affects Their Future “Parts & Service Business” They Wanna Milk That ICE for All it’s Worth…Not to Mention BIG 0IL Influences & incentives .

F150 Brian

Thanks for the informative response.
EVs are no where close to being at cost parity with ICE. If you have an actual reference, produce it.
Even Musk says that he can’t build a $35K Model 3 without losing money.

amt

You Are Very Wrong ..Musk?…Trade Secrets Are Just That ! A Secret !…. It All Balances 0ut , The Money Saved On LESS PARTS & LABOR (((ie Motors, Trans, Trans Axles, + 0ils & Fluids, SS Exhaust systems, Rads, hoses Pumps Clamps, Emission Controls & E Systems etc:))) Goes Towards Battery Cost … Plus Battery Costs are Steadily Falling .

Vexar

Not yet, anyway. We shall see what December holds for Tesla. It sounds to me that the difference between the $35k and $48k Model III is bringing the pack price down. Or, the margin is covering for manufacturing inefficiency.

Brett

Study showing the total cost of ownership a battery electric vehicle is less expensive than a comparable gasoline or diesel vehicle:

https://www.sciencedirect.com/science/article/pii/S030626191731526X?via%3Dihub

That study was published in January 2018, but used TCO data from 1987 to 2015, so the life cycle costs of a battery electric or hybrid vehicle are likely even lower today.

William

Big OPEC (M.E.) 0il interests own a significant portion of VW (Quatar Holding, LLC. 17%).

So it’s no surprise that entire M.E. countries, and their sovereign wealth funds, are heavily invested in maintaining and perpetuating the ICE business model, as it remains extremely profitable in its current form.

https://www.caranddriver.com/features/how-and-why-the-middle-east-is-buying-into-europes-car-companies-feature

Do Not Read Between The Lines

If it’s cost parity, then it’d include all cost, including fuel, maintenance, and testing.

Price parity would be at the vehicle level.
Electric drivetrains are a bit cheaper than gasoline ICEV drivetrain, so cheaper than diesel drivetrains but the battery’s a big chunk, even if they get to $100/kWh.
However, BEVs are simpler to build. Something like a 30% reduction in labor hours.

Lee Ramer

If they achieve their goal Elon Musk will be happy and his mission well on it’s way. As much as I detest VW for the lying and cheating I will be happy about their EV production.

Ricardo

Seriously. Do you really believe that? Can anyone actually be that naive?

Pushmi-Pullyu

I share his opinion 100%. Perhaps it is you who is out of touch.

ffbj

In the first sentence just drop the ( on the), and that would be correct.

Cypress

“Volkswagen is set to release the first EVs in the U.S. in 2020 with the ID hatchback”

From previous reports, they are not bringing the ID hatchback to the US. But they are bringing the ID Crozz to North America.

Cypress

“For Volkswagen, their new modular electric platform (MEB) will hopefully allow them to produce up to a million EVs a year by 2025”

It’s always a bit confusing, because that’s just for VW brand. For the entire VW group of brands (VW, Audi, Porsche, etc), it’s 3million per year by 2025.

Another Euro point of view

This should hopefully be more credible than the $35k Model 3 however if those prices applies to VW EVs as from 2025 with 35kWh batteries that would be nothing to write home about, they should be a bit more specific if that applies as from 2020 for EVs having a decent range (decent = mass market range = IMO 250 miles range meaning 170 miles no matter the conditions (head winds & sub 0 °c temp.)

Link

They already revealed that the base ID Neo will have 48 kWh in 2020.

Another Euro point of view

OK thanks then such EV at diesel car prices would be nothing short of amazing considering it is doubtful that VW group shareholders would agree to make loss making cars in large numbers. I really look forward to that. Now one thing I am sure VW group can do very well is thoroughly calculating the costs of making any car.

Vexar

I bet you a monkey with lung disease that Tesla gets the $35k Model III out before VW sells a single vehicle on the MEB platform.

Another Euro point of view

Like what ? Making 1’000 copies of them to say we have done it ? Now lung diseased can probably be cured with antibiotics. Please send me the vet bill and lets not start making bets on this poor animal head. 🙂

Pushmi-Pullyu

Getting ready to move the goal posts for Tesla yet again, I see. 🙄

Viking79

Model 3 will of course be out first, probably in 3-6 months. However, ID won’t be sold in US so the ID might beat cheap Model 3 to international markets.

Prsnep

Was this ever in doubt? Tesla could probably churn out the $35k Model 3 in 2 months if they weren’t focused on the costlier models.

(⌐■_■) Trollnonymous
Nick

“hopefully a properly made electric version of the VW Golf”

Strange comment, does the ID hatchback not replace the Golf? It should have many advantages.

Link

Yeah, I believe the Golf brand will die with the combustion version, whenever that will be. It might even be the last ICE car VW will sell.

John-EU

It is probably true: they will sell an e-Golf for the price of an Audi A8 Diesel

Adoreizi

If they price the Crozz to a diesel Tuouareg ($53k), that is not affordable. Affordable must be less than $40 before subsidies.

Also, in a pervious article, VW is quoted to offer the Crozz at Atlas pricing which is in the $30s…

Bloggin

So we are looking at the $25k EV that Elon talked about, which should be the VW I.D. Which is essentially the Golf EV. My guess is that it will also offer a base 200+ mile pack with an available upgrade to 300+ miles.

But that looks like VWs plan with focusing on such high volume and 7 battery manufacturing plants globally.

AP

More VW BS. If you believe this, I have a beautiful bridge to sell you.

TM3x2 Chris

Hope you have more than one to sell. I’m looking for one Brooklyn and two Golden Gates.

windbourne

For those of you gripping about VW’s time line, I ask, does it really matter? Seriously. Creating a 1-off is easy. Starting a WHOLE new industry, is a bitch. Tesla has promised many things, and while They continue to deliver the promise, they have RARELY made their timelines.
It really will not matter if VW is on time or not.

What WILL matter, is will VW deliver these vehicles at the prices that they claim and similar performance to a Tesla with the ultra-speed charging network that they claim,
OR will it be more of the e-golf/I-3/zoe/etc, which are highly overpriced POS that are ugly and poor performance combined with a network that puts chargers in all the wrong locations?

Al D

If the ID is priced under $30,000, we may see another situation like we saw with the Prius when that car caught fire – dealers tacking a premium on them due to a long waiting list.

Mark.ca

it won’t.
They will not do that to their ICE lineup.

SJC

Batteries are key to lower prices, Honda went with CATL for the 2020 Fit EV.

Brian

I didn’t know Honda was going to do another Fit EV. Interesting. I thought it was just a conversion to fill the gap until the Clarity made it to market.

Joel Backman

Looks like a good time for many car manufacturers to focus more on EVs, given todays oil prices with $84 a barrel.
That is a 50% price increase in one year.
IEA and Bank of America Merrill Lynch says they’re not surpriced if the price will reach $100, and warns about economic pressure for many countries.

Milfan

1 day VW says that its expensive to produce electric car and on another day they are saying that they will produce 1 million by 2025. Sounds contradictory.
No they are just confusing the people and trying to prevent consumers from buying electric vehicles.

First they should try to sell 10,000 electric vehicles / year and then talk about 1 million.
Most of the plugins they sold this year are only plugin hybrids with < 20 mile / 30 km range.

I think their diesel sales are declining.

Link

Just because something is expensive doesn’t mean that you aren’t going to do it anyway, it’s just harder to achieve.

Nono13

I think they are already selling 10,000 EV a year with the E-Golf (production of 70 units/day since March 2018) and E-Up.

Kan

They’ll cheat on the range:)

Milfan

I think there is a competition between VW & Toyota as who is the biggest liar.
VW talks about selling 1 million electric vehicles.
Toyota talks about fuel cells becoming the future and EVs will fail.

VW has a commanding lead in bluffing as they throw out some news every week while Toyota gives such anti EV ad once a month.
Hope Toyota throws more bluffs and narrows the lead so that competition narrows.

Milfan

For all those VW supporters, please ask this question to VW group.

They notified EPA that eGolf will be sold for model years 2018 and also 2019.

Where is the eGolf 2018?
Where is the eGolf 2019?

Neither 1 is being sold. So they fooled EPA and everyone. And they are claiming that they will sell ID, ID.Crozz, ID.Buzz and so on.

https://www.fueleconomy.gov/feg/PowerSearch.do?action=PowerSearch&year1=2018&year2=2019&cbmkVolkswagen=Volkswagen&minmsrpsel=0&maxmsrpsel=0&city=0&highway=0&combined=0&cbftelectricity=Electricity&YearSel=2018-2019&MakeSel=Volkswagen&MarClassSel=&FuelTypeSel=Electricity&VehTypeSel=&TranySel=&DriveTypeSel=&CylindersSel=&MpgSel=000&sortBy=Comb&Units=&url=SearchServlet&opt=new&minmsrp=0&maxmsrp=0&minmpg=&maxmpg=&rowLimit=10

Link

These e-Golfs are driving around in Norway, Germany and other European countries. Demand grew so much that they don’t have any production capacity left for shipping some to North America. And they are not going to increase production capacity one year before the model is discontinued because it’s replaced with the ID Neo. Makes no sense.

Lazy J

Article is wrong. ID hatchback will not be released in US.

Rob R

VW are at least talking a good game, unlike BMW, who have been saying just this week (per a senior manager) that electric cars cannot, and never will, match the price of ICE cars.
I am still not convinced that VW mean what they say though, they may just be more politically astute. Proof of pudding etc, and there is precious little pudding to eat from VW, just nice pictures on the menu.