VW will not match Tesla price cuts for its EVs

BERLIN — The Volkswagen Group has no plans to offer discounts on its electric vehicles to counter Tesla’s price cuts, CEO Oliver Blume told a German newspaper.

Bloom said Volkswagen will not enter into a price war with Tesla. Sunday newspaper of Frankfurter Allgemeine“We have a clear pricing strategy and focus on reliability. We believe in the strength of our products and brands,” he said.

VW wants to become the global leader in EVs, but this should be achieved through profitable growth, Blume said.

In the US, Ford has slashed the price of the Mustang Mach E crossover by $600 to $5,900, depending on trim, following Tesla’s price cut.

“Price cuts are happening faster and more brutally than expected,” said Antoine Weil, a partner at consultancy Simon-Kucher & Partners. We may be aiming for it,” he said. car news europe sister publication car week.

With the exception of Volkswagen, Renault has no plans to cut the prices of its EVs in response to Tesla cutting its Model Y and Model 3 cars by up to 20%.

“Any price cut of more than 10% within a week would put pressure on residual value and hurt existing customers,” Renault brand chief Fabrice Cambolieve said. car week“Stability is key for us, but we can foresee EV pricing coming under scrutiny,” he said.

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