VW Has No Plans to Cut EV Prices in Response to Tesla and Ford
Automakers would love to have you believe that they all march to their own drummers, but the reality is that the market is tied together in ways both obvious and less so. Yesterday, Ford announced it would cut prices and bump production for the Mustang Mach-E, a likely response to Tesla’s massive recent price cuts. Most other automakers are yet to respond, but Volkswagen wasted no time announcing that it would not follow Tesla and Ford with price cuts on its EVs.
CEO Oliver Blume told a German newspaper that the company has “a clear pricing strategy,” noting that VW is focused on reliability.
“We trust in the strength of our products and brands,” he continued. His view is that VW’s goal to become an EV leader can be achieved through profitable growth rather than discounts.
Some are skeptical of the price cuts, saying they hurt customers. Renault COO Fabrice Cambolive said that slashing prices by 10 percent or more hurts existing customers and drags down residual values. The French automaker seeks stability in the market, but Cambolive admitted that pricing could be an issue for the company in the future.
Others are headed in the opposite direction. Porsche is weighing a price increase for its vehicles, with a spokesperson saying that price changes for each model year are standard practice. The German performance automaker plans to release pricing for the new model year in March.
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Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.
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