X

Volkswagen wants its electric cars to mirror traditional pricing model

VW's first electric car in the US will likely feature a price similar to a comparable gas-powered vehicle.

Volkswagen ID concept family

It sounds like VW wants to make its EVs truly affordable.

Volkswagen

There are a handful of roadblocks that seemingly keep Americans from taking a closer look at electric cars , and one of the big ones is the P word: Price.

Electric cars likely have years before they reach cost parity with vehicles donning an internal-combustion engine, but Volkswagen wants to scrap the waiting game. Instead, it's looking at an "apples to apples" kind of approach for its electric vehicles. That's the word from Volkswagen America CEO Scott Keogh.

The CEO told Green Car Reports in an interview published Tuesday that the automaker's goal is to price its electric cars comparable to a similar fossil fuel-powered model in its lineup. In this case, he spoke of the forthcoming ID 4 -- an electric SUV that will mark VW's electric car assault on the US. The wonderful ID 3 hatchback isn't coming to America, to everyone at Roadshow's dismay.

The ID 4 should be sized similarly to the Tiguan crossover SUV, and with a price point to match the traditional car, it VW "is positioning it for the masses." As a reminder, the Tiguan starts at $25,290 after a destination charge. Options kick the final cost up to $39,890.

What's unclear is if Keogh imagines this price mirroring strategy to include any available tax credits and other incentives. VW will be able to take advantage of the $7,500 tax credit when the ID 4 goes on sale. If VW were to price its electric SUV at a sub-$30,000 price point before the tax credit, we could really be looking at a game changer. The automaker would also likely be looking at minimal, if any, profits.

We won't have too much longer to wait. VW plans to launch the electric SUV in 2020, which means we'll likely see the production version bow in the near future.

Volkswagen's ID Crozz looks electrifying in red

See all photos
Watch this: VW's ID Crozz quietly charges toward 2020 launch
Sean Szymkowski
It all started with Gran Turismo. From those early PlayStation days, Sean was drawn to anything with four wheels. Prior to joining the Roadshow team, he was a freelance contributor for Motor Authority, The Car Connection and Green Car Reports. As for what's in the garage, Sean owns a 2016 Chevrolet SS, and yes, it has Holden badges.
Sean Szymkowski
It all started with Gran Turismo. From those early PlayStation days, Sean was drawn to anything with four wheels. Prior to joining the Roadshow team, he was a freelance contributor for Motor Authority, The Car Connection and Green Car Reports. As for what's in the garage, Sean owns a 2016 Chevrolet SS, and yes, it has Holden badges.

Article updated on September 20, 2019 at 8:20 AM PDT

Our Experts

Written by 
Sean Szymkowski
CNET staff -- not advertisers, partners or business interests -- determine how we review the products and services we cover. If you buy through our links, we may get paid. Reviews ethics statement
Sean Szymkowski
It all started with Gran Turismo. From those early PlayStation days, Sean was drawn to anything with four wheels. Prior to joining the Roadshow team, he was a freelance contributor for Motor Authority, The Car Connection and Green Car Reports. As for what's in the garage, Sean owns a 2016 Chevrolet SS, and yes, it has Holden badges.
Why You Can Trust CNET
174175176177178179180+
Experts Interviewed
030405060708091011121314+
Companies Reviewed
108109110111112113+
Products Reviewed

We thoroughly evaluate each company and product we review and ensure our stories meet our high editorial standards.