Volkswagen Offers Cheaper Electric Vehicles

Published on 23 Jul 2022

Volkswagen, Cheaper, Electric Vehicles

The Volkswagen ID.4 electric crossover SUV is currently manufactured at the German automaker's Chattanooga, Tennessee, vehicle plant. It is the company's first EV made in the United States and a precursor to a more inexpensive ID.4 model.

Volkswagen wants to increase output at its Chattanooga plant to 7,000 cars per month "later this year" to produce even more vehicles per month in 2023. The first client deliveries are anticipated to begin in October 2022.

Since its debut in 2021, Volkswagen has delivered more than 190,000 ID.4 electric cars to consumers worldwide. In May of 2022, VW CEO Herbert Diess, stepping down in September, said that the business was "essentially sold out" of electric cars in Europe and the United States for the year.

Volkswagen said launching ID.4 manufacturing in Chattanooga should alleviate its supply issues. The business has "a substantial amount of reservations for the ID.4 at now, and localized assembly should help us fulfill these orders," according to a representative.

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The Price Component of ID.4

Pricing is another reason for the significance of this news. In 2020, when the ID.4 was announced, the basic model was intended to cost $40,000. This price increased to $41,230. The business said it planned to price its U.S.-made ID.4s at $35,000, or $27,500, with the federal tax credit. 

The less costly ID.4 will have a 62kWh battery, unlike the more expensive models with 82kWh batteries and either rear-wheel or all-wheel drive. The 62kWh models will presumably have less range than the bigger battery packs, which allow for around 250 miles.

LG Chem initially manufactured the ID.4's battery pack, constructed of 288 pouch cells in 12 modules. In contrast, Volkswagen uses batteries provided by SK Innovation, a second South Korean business that just established a $2 billion manufacturing next to Volkswagen's plant in South Korea.

Volkswagen's Plant Team Structure

Volkswagen's Chattanooga plant employs more than 4,000 people. Volkswagen is actively using more than 1,000 more employees until 2022 to satisfy the strong demand for the ID.4 and Atlas SUV. Volkswagen also promotes components manufactured in other U.S. states, including steel from Alabama and Ohio, interior components from Indiana and South Carolina, and electrical components from Kentucky and North Carolina.


Featured image: Volkswagen


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