Everything seems to be getting really, really expensive these days, except for Teslas as the company has been slashing prices for its EVs all over the world in recent weeks. But, while Ford clamored to follow Tesla down the price-cutting rabbit hole, German automaker Volkswagen assures that it won’t be making any such moves.
Tesla began cutting the price of some of its best-selling models last year. The cuts started in China and soon spread to the U.S., where the American EV brand slashed up to 20 percent off the price of some models.
Soon after Tesla announced the cuts, Ford followed suit and slashed prices of its Mustang Mach-E EV. Here in the states, buyers can now pick up a new electric Mustang for up to $5,900 less than they could last year.
While it might have looked like the cuts from Ford and Tesla were the first in a long line of EV-selling dominoes that could soon fall, VW appears to have quickly put a stop to the trend. According to Automotive News, the German automaker won’t be slashing prices of its range of electric cars anytime soon. The site reports:
Volkswagen Group has no plans to offer discounts for its electric vehicles to counter price cuts by Tesla, CEO Oliver Blume told a German newspaper.
VW will not take part in a price war with Tesla, Blume told the Frankfurter Allgemeine Sonntagszeitung. “We have a clear pricing strategy and are focusing on reliability. We trust in the strength of our products and brands,” he said.
VW’s range of electric vehicles available to buy in the U.S. includes the ID. 4 electric SUV, with the ID Buzz electric minivan set to join the range later this year. The ID. 4 starts at $39,995 here in the U.S., putting it $6,000 less than the base price for Ford’s Mustang Mach-E.
Tesla’s closest rival to VW electric SUV, the Model Y, starts at $53,490 following a 20 percent drop earlier this year.
In contrast, VW-owned performance brand Porsche could be set to increase the prices of its electric models, which include the Taycan and the wonderful Sport Turismo wagon. Automotive News added:
VW Group’s Porsche brand is considering increasing its vehicle prices by up to 6 percent, according to dealer sources.
“Price adjustments at the change of model year are standard industry practice,” a Porsche spokesman told Automobilwoche without confirming the size of the price rises or which models would be affected.
The site reports that pricing for the coming model year would be published in March. At that point we’ll know if the cost of a shiny new Taycan is on the rise.