The Volkswagen ID.3 is meant to herald an age of affordable, zero-emission mobility. One thing it will definitely herald, however, is substantial savings for the German automaker…
Significant Cost Reductions
This month, Volkswagen announced that it had started production of the ID.3 at a factory in Zwickau; the facility has been converted soley for the assembly of all-electric models. During an investor event the company’s Chief Executive, Herbert Diess, stated that the new, all-electric model would be significantly cheaper to build than the e-Golf. He said, “if you focus on an electric platform, all in all it accounts for a 40% reduction against the predecessor electric Golf. Most of it from cells and the battery system. Around 5-10% comes from dedicating an entire plant to electric vehicles”.
The e-Golf itself was simply a conversion from the Golf. Whereas the ID.3 has been built from the ground up on an electric platform. In this case, it’s the MEB platform which has been made for all of the company’s upcoming EVs. It’s also worth considering that the e-Golf was only ever made in small numbers, whereas the ID.3 has always been intended for volume production. As Diess mentioned, a game-changer is having facilities entirely dedicated to electric powertrains.
Diess’ announcement is somewhat curious. Only a year ago he emphasised that EVs were, and would remain, significantly more expensive than petrols. On bringing EVs to market he explained, “the burden for our company, such as the cost of bringing to market electric cars, will be higher than expected. This is particularly so since some of our competitors have been making more progress”. There are a number of things to consider. The first is the creation of infrastructure and facilities dedicated to EVs; a year ago, VW was relying on partially converted plants and factories. The second is that the manufacturing technology is improving at a rapid pace.
Volkswagen claims that it’s paying $100 for the batteries used in its EVs. It’s also looking to build its own batteries via a new gigafactory. Even more intriguingly, it’s announced plans to create a sub-£20,000 electric vehicle by 2023. In short, the company is becoming more confident as its new supply-chain, model range and manufacturing infrastructure begin to stake shape. Automakers have mixed feelings about EVs. They know that on a legislative level, they’re a necessity, but in terms of demand things are still exceptionally embryonic. For a time, it was sensible for them to offer a middling, public perspective. Now, it seems, they’re going all in; at least in Volkswagen’s case…
Volkswagen: Electric Cars Are ‘Nearly’ As Cheap As Petrols – https://autoserve.co.uk/motoring-news/volkswagen-electric-cars-cheap-petrols/
Meet ID.3, Volkswagen’s First Model In The ID Series – https://www.autoservefleet.co.uk/latest-news/meet-volkswagens-id3/