Volkswagen Targets Sub-$35K Electric Vehicle For US Market: Report

Volkswagen AG VWAGY reportedly plans to launch a sub-$35,000 electric vehicle in the U.S. in the next three to four years. 

Reinhard Fischer, Senior Vice President and Head of Strategy at VW Group of America, affirmed the company's commitment to expanding its EV offerings in the U.S., according to a report from Reuters.

Meanwhile, Chinese car manufacturer NIO Inc NIO is still debating a 2025 entry into North America, the report further noted, citing the company's senior executives speaking at the Reuters Events Automotive USA 2023 conference.

Volkswagen's plans include potential production locations in the U.S. or Mexico, with Chattanooga, Tennessee, Puebla, Mexico, and a new South Carolina plant under consideration for VW subsidiary Scout, as per the report.

Volkswagen is also exploring the localization of battery pack assembly to benefit from incentives under the U.S. Inflation Reduction Act.

This move aligns with Volkswagen's previously announced strategy to manufacture battery cells in Canada for its North American EV operations.

On the other hand, Ganesh Iyer, CEO of Nio USA, highlighted the changes in geopolitical landscapes, global supply chains, and other factors influencing the company's decision to sell cars in the U.S. market, according to the report.

Iyer noted that Nio needs to establish a robust infrastructure and is considering various partnerships before making a move into North America.

Also Read: Why This Lucid Analyst Is Bullish On The EV Maker Despite Q3 Disappointment

Price Action: VWAGY shares are trading lower by 0.08% at $12.32 on the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.