VW Has No Plans to Cut EV Prices in Response to Tesla and Ford

Chris Teague
by Chris Teague

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. 

[Image: Volkswagen]

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Chris Teague
Chris Teague

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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5 of 16 comments
  • Inside Looking Out Inside Looking Out on Jan 31, 2023

    We also have fair amounts of BEV VWs. But they are not as distinctive as Teslas and they look just like another plain vanilla VW.

  • Dragonphire Dragonphire on Feb 01, 2023

    WHy are you guys laughing They really should be focused on reliability. Have you seen what they have done the last 30 years ...they need to raise prices if it can make them more reliable.. lol

  • Dragonphire Dragonphire on Feb 01, 2023

    IMO Ford should have never cut prices they should be focused on production and quality. It took Tesla 10 years to become profitable by selling cars why do OEMs think they can do it faster. It will take Ford 6-7 years of Mach Es to do this. That would put them in their 3rd gen of Mach E and make me 64 years old. I will buy one then..lol

    • Syke Syke on Feb 01, 2023

      Since when do the legacy automakers worry about the long term? To the automaker, long term is end of the quarter, just like it's end of the month for the dealer. Nothing else matters.