Volkswagen would plan an electric car to compete with Tesla | Economy | Business

Volkswagen AG plans to add a crossover product that will cost around 18,000 euros (21,000 USD) to its range of all-electric vehicles I.D., which will expand its range of zero emissions that are more affordable than those of Tesla Inc., according to people with knowledge of the subject.

The entry-level vehicle could be produced in the VW factory located in Emden, Germany, according to sources, who asked not to reveal their identity because the plan had not received the Final approval of the manufacturer's supervisory board. Sales will start after 2020 and the company expects to sell about 200,000 each year, they said. This would place it at the same level as the current production levels of Tesla Model 3, which has a higher price and continues to increase volume.

A mid-size electric sedan and a family car called I.D. Aero could add production of an additional 100,000 cars a year to the Emden plant. Until now, the factory focuses on the Passat sedan and family vehicle, which in 2022 would be transferred to the Czech brand sister plant Skoda, in Kvasiny, according to sources.

VW declined to comment.

The renewal of production, internally called the Polaris project, is part of a broad restructuring aimed at more efficiently distributing vehicle manufacturing across the 12 VW car brands. The world 's largest automaker is trying to free up funds for one of the most aggressive initiatives in the auto industry: a reorganization funded in part by billions of euros from cross – economies. on the whole group, closer cooperation between brands. and the elimination of slow selling models, accessories and color options.

In China, VW plans to expand the production of electric cars and expand beyond a factory in Anting and a center in Foshan that have already been selected to manufacture cars powered exclusively by batteries from 2020. In North America, VW plans to manufacture electric cars. in the company's only vehicle manufacturing plant in Chattanooga, United States.

The first of the ID electric car range is the ID Neo, which will be manufactured in Zwickau, Germany, and will be marketed from 2020. With less complexity and fewer model variants, VW may be able to produce the car in about half the time needed to assemble a Golf hatchback, according to sources. VW said it would sell at the price of a comparable diesel car, giving a price of about 23,000 euros.

Herbert Diess, the company's top executive, said in a recent interview that the company could license its new electric car technology, dubbed MEB, to Ford Motor Co. as part of the cooperative negotiations between the two companies. . VW is also discussing the possibility of sharing this technology with other automakers around the world, according to people. Collaborating with other peers to share costs is a strategy shift for the German manufacturer, as cooperative efforts in the past have often been stymied by cultural differences.

As part of the investment campaign, VW plans to build a new plant in a country in Eastern Europe, such as Hungary or Bulgaria. This would allow it to benefit from lower labor costs with an annual production capacity of 350,000 vehicles, including cars currently manufactured at the Skoda factory in Kvasiny, but which must leave room for place at the Passat.

The VW Supervisory Board will meet on 16 November to discuss the reorganization of production and the corresponding investment plans for the coming years.