VW plans 25 EVs qualifying for $7,500 tax credit by 2030


Volkswagen plans to sell 25 all-electric models in the U.S. by 2030, all of which will qualify for the full $7,500 federal tax credit under new Inflation Reduction Act (IRA) rules, the top U.S. executive of VW said in an interview with Bloomberg (via Automotive News Europe).

“We have a great opportunity in the U.S.,” VW Group of America CEO Pablo Di Si said in the interview. “I believe this is the right time and the right place.”

Volkswagen ID.4 built at Chattanooga

Volkswagen ID.4 built at Chattanooga

The IRA requires North American assembly of vehicles and their battery packs, and sets requirements for where battery raw materials can be sourced from. VW has already made plans for 80% of the 25 new EVs it plans to introduce by 2030 to be assembled in the U.S. or Mexico, which would check one of the tax-credit boxes. But it would need to do the same for all EVs, or perhaps assemble the remaining 20% in Canada, where the company last month announced an EV battery plant, to qualify for the full credit amount.

Automotive News Europe chalks this up to yet another attempt by the VW Group to grow U.S. market share. The company is targeting a 5% share for its namesake brand by 2030, up from 1.8% today, the publication notes, and 10% including its Audi and Porsche luxury brands over the same timeframe. Previous attempts including, in just the last decade, opening a U.S. factory in Chattanooga, Tennessee, and shifting the VW lineup to focus more on SUVs, have still left VW behind other automakers.

Volkswagen ID.4 built at Chattanooga

Volkswagen ID.4 built at Chattanooga

The ID.4 is currently VW’s only U.S.-made EV—and the only one that might qualify for the $7,500 tax credit. VW did promise that the ID.4, which is now being built in Chattanooga, would take on mainstream models like the Honda CR-V and Toyota RAV4 as part of its “for millions, not just millionaires” EV mantra. VW now plans to spend $7 billion on expanding U.S. EV production, adding the ID.Buzz in 2024 and mid-size and large electric SUVs after that, according to Automotive News Europe.

The VW Group also has Scout, a new brand slated to build rugged electric trucks in the spirit of the classic International Scout off-roader, but it’s being run as a standalone company in America. The first Scout model, a $40,000 electric SUV, is due to be unveiled in 2024 and start production in 2026 at a new South Carolina factory.



Source link

Related post

    Leave a Comment