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.
Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by subscribing to our newsletter.
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.
"VW is focused on reliability"
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
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