Volkswagen refuses to play Tesla’s game by cutting its prices
Since Tesla lowered its prices, the reactions of all other electric car manufacturers have been observed. The Volkswagen group has clearly announced that it will not follow Tesla.
Tesla announced a big price cut in all the brand’s markets in early 2023, including Europe. Faced with price cuts of up to 16%, the reaction of various competitors is awaited.
Although many brands have raised the prices of their electric cars in 2022, it seems difficult for these manufacturers to follow Tesla in this price war. Olivier Blume, CEO of the Volkswagen Group, in an interview with the German media Frankfurter Allgemeine Sonntagszeitung confirmed that it is not on the agenda for the group’s brands.
Like other European manufacturers, Volkswagen won’t play Tesla’s game
It’s hard to say whether European manufacturers don’t want to, or won’t, play the price war that Tesla has initiated. Oliver Blume, CEO of Volkswagen, replied: We have a clear pricing strategy and we rely on reliability. We are confident in the strength of our products and our brands. »
Oliver Blume maintains the group’s ambitions to be a leader in electric vehicles, but the group wants to do so in a ” profitable growth “. Moreover, according to Automobilwoche, the prices of the electric Porsche may increase soon.
In general, European manufacturers seem to be following the same course. If Tesla is a benchmark for the price in the electric car market, none of the incumbent manufacturers is ready to change its prices as suddenly as the American manufacturer.
Fabrice Cambolive, head of the Renault brand, told German media Automobilwoche: “ If you reduce sales prices by 10% or more in a week, it will affect residual values and hurt existing customers. Stability is important to us. But it is predictable that the prices of electric cars will come under intense scrutiny. »
Vinfast, Xpeng, Lucid or Ford decided to lower their prices in different ways
The downward price movement initiated by Tesla has prompted some brands to react and communicate more or less openly on the subject.
- For some, like Xpeng, this means changing their catalog prices in China.
- The Vietnamese manufacturer Vinfast is still thinking about the form it will give this price reduction, but it wants to adapt to ensure its introduction to the American market. So he had no choice.
- On the side of Lucid Motors, it is a discount of 7,500 € on the rental conditions of the Lucid Air that some customers received by email.
Finally, Ford today announced a $5,900 drop on the Mustang Mach-e in the United States. If the brand responds to Tesla’s price drop, it will also be because its production capacities will allow it to save money. Ford CEO Jim Farley tweeted: The production upgrade will reduce customer waiting times. And with higher production, we reduce costs, allowing us to share those savings with customers. »
It is not specified whether the drop in prices will also affect other markets, outside the USA. Mustang Mach-e has increased its prices in the year 2022 in France, a decrease in its price in 2023 is welcome for this model.
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