In response to any potential EV price war that may have been ignited this month by Tesla and now Ford, the CEO of the Volkswagen Group noted, that the corporation and its affiliated brands intend to leave their options open.
VW Group CEO Oliver Blume reaffirmed that VW will not engage in the EV price war. Additionally, he claimed, “we have a clear pricing strategy and are focusing on reliability. We trust the strength of our products and brands.”
In order to compete in the market, several companies dropped the pricing of their electric vehicles almost immediately following Tesla. The price reductions are problematic for the developing EV sector because only Tesla and a few Chinese manufacturers currently have the economies of scale and production efficiency needed to do it.
Because many manufacturers and startups have succeeded in a growth-first approach, it was important to highlight that VW will not sacrifice profitability for volume. This suggests that selling EVs at a loss to gain market share, followed by a gradual price increase due to rising labor and production expenses, is not just part of a playbook, but rather is the playbook for some EV manufacturers.
On the other hand, the world’s largest automaker has asserted that it would rarely invest in internal combustion technology as the world continues to evolve. Additionally, the automaker believes that in a few years, the most expensive part of EV development will be over.
“The double investment burden will decrease then, and that is when we hope to achieve large returns from electric mobility,” emphasized Chief Financial Officer Arno Antitz.
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