VW boss hints at costly small e-cars

Low income groups may not be able to afford a car: VW

Berlin, Jan. 20: The move to electric vehicles will make cars significantly more expensive, meaning they may become unaffordable for people on low incomes in the future, the chairman of Volkswagen said in an interview published on Sunday.

The German carmaker is still reeling from a 2015 scandal over cheating on emissions tests and needs to ramp up production of electric vehicles to meet toughened European emmissions-cutting targets. “We have the clear goal of making electromobility accessible to a broad section of the population, that is to make it affordable,” Hans-Dieter Poetsch told the Welt am Sonntag newspaper.

But he said it could be difficult to maintain the prices of many entrylevel vehicles.

“The current price level cannot stay the same if these cars are equipped with electric motors,” said Mr Poetsch.

“Therefore, it will inevitably lead to significant price increases in the small car segment.”

“The first electric car developed by Volkswagen will be available from a price of around 30,000 euros. This corresponds to a comparably equipped VW Golf,” the German newspaper quoted the Volkswagen chairman as saying.

Mr Poetsch referred to the tougher-than-expected targets to cut greenhouse emissions from cars by 37.5 per cent by 2030, which the European Uni-on agreed in December.

Volkswagen said it may have to step up plans for mass production of electric vehicles to meet the EU targets.

According to the newspaper, the Volkswagen chairman said that the company would also invest heavily in manufacturing traction batteries.

“In the field of battery cells, we have set up a competence centre in Salzgitter to understand this technology. In addition, we are also associated with US-based QuantumScape, which is working on the next generation of battery cells.”

VW plans to spend 44 billion euros on developing electric cars, autonomous driving and new mobility services by 2023.

THE CURRENT price level cannot stay the same if these cars are equipped with electric motors. Therefore, it will inevitably lead to significant price increases in the small car segment. — HANS-DIETER POETSCH, CHAIRMAN, VOLKSWAGEN