Friday November 09, 2018

Volkswagen is Planning a $23,000 Tesla Competitor

An anonymous source told Reuters that Volkswagen is planning a $23,000 electric car designed to compete with Tesla. The company publicly announced plans for a large electric lineup in 2020, but European cities are increasingly putting more pressure on the German manufacturer as they ban diesel cars over emissions concerns, which is allegedly forcing Volkswagen to accelerate their plans. The source also said that the entry level electric car could have "a production volume of 200,000 vehicles," that other electric electric cars like a mid-size sedan and a van are in the works, and that the company is moving mountains to free up production capacity for the new vehicles. Volkswagen is even exploring a partnership with Ford.

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The November 16 strategy meeting will discuss Volkswagen's transformation plan to shift from being Europe's largest maker of combustion engine vehicles into a mass producer of electric cars, another source familiar with the deliberations said. VW's strategy shift comes as cities start to ban diesel engine vehicles, forcing carmakers to think of new ways to safeguard 600,000 German industrial jobs, of which 436,000 are at car companies and their suppliers. An electric van, the ID Buzz, is due to be built at VW's plant in Hannover, where its T6 Van is made, the source said. To free up production capacity for electric cars in Hannover, VW's transporter vans could be produced at a Ford (F.N) plant in Turkey, if German labor unions, who hold half the seats on VW's board of directors, agree, the source added.