VW’s Uncertain Future: Will a Sub-€20K EV Become a Reality?

Volkswagen (VW) had announced earlier this year its plans to develop an electric vehicle (EV) priced below €20,000, but now the automaker seems hesitant. While VW previously boasted about the cost-cutting benefits of its new battery technology, CEO Oliver Blume has expressed uncertainty about the feasibility of producing such an affordable EV.

The main concern lies in the profitability of selling a sub-€20K EV. VW has stated that its new unified prismatic cell technology could potentially reduce battery costs by 50%. However, it remains unclear whether this reduction alone would be sufficient to meet the target price point.

During a recent conference, Blume openly acknowledged the challenges the company faces in achieving its goal. While VW is committed to transitioning toward electric mobility, balancing affordability and profitability is a delicate equation that demands careful consideration.


Q: Is VW still working on a sub-€20K EV?

A: VW has not made a definitive decision regarding the production of a sub-€20K EV.

Q: What is the main obstacle?

A: The main obstacle is determining whether the reduced battery costs achieved through VW’s new unified prismatic cell technology are enough to meet the target price.

Q: Why does profitability matter?

A: Ensuring profitability is crucial for any business, including VW. Without sufficient profitability, it is not feasible for the company to invest in manufacturing and producing an affordable EV.

Q: What are VW’s priorities?

A: VW is committed to transitioning toward electric mobility and reducing carbon emissions.

While VW’s uncertain stance on the sub-€20K EV may disappoint some, it is important to remember the complexities involved in the automotive industry. Balancing affordability, profitability, and sustainability requires careful planning and strategic decision-making. As VW continues to navigate these challenges, only time will tell if they can successfully deliver an affordable EV to the market.