Volkswagen has admitted that the all-electric VW ID.4 is not yet profitable, but is confident it can start making money from the first-generation electric vehicle.
According to the head of the department of development of passenger cars VW Thomas Ulbrich, the current price of ID.4 is not fair – the company is losing on car sales. He believes that one of the reasons the SUV is not yet profitable is because the company is still ramping up production at its assembly plant in Zwickau, Germany.
“This is not only a question of car development, it is also a part of increasing the plant’s capacity,” said the top manager.
VW believes that the increase in the number of electric vehicles will reduce purchasing costs and make them more affordable. However, according to Eric Noble, president of consulting firm CarLab, it may not be that easy because the supply of materials used in electric vehicle batteries will be limited as demand for electric vehicles grows.
According to Ulbrich, Volkswagen is focusing on improving battery efficiency and reducing the cost of raw materials, separators and thermal management systems. The company also plans to use solid-state batteries when the technology is ready, but until that happens, Noble argues that “VW shareholders or German taxpayers should be prepared to massively subsidize every new electric vehicle.
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