Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

VW CEO says new ID.3 car 40% cheaper to build than electric Golf

Published 11/18/2019, 08:17 AM
Updated 11/18/2019, 08:17 AM
© Reuters. Employees work at a production line of a a new electric Volkswagen model ID.3 in Zwickau

FRANKFURT (Reuters) - Volkswagen's (DE:VOWG_p) new ID.3 electric vehicle will be 40% cheaper to build than the electric version of its Golf model, Chief Executive Herbert Diess told investors on Monday.

The battery in the new ID.3 can be used to add structural rigidity to the body and the modular layout of the battery allows for advantages in packaging and economies of scale.

"If you focus on an electric platform, all in all it accounts for a 40% reduction against the predecessor electric Golf," Diess said. "Most of it from cells and the battery system. Around 5-10% comes from dedicating an entire plant to electric vehicles."

© Reuters. Employees work at a production line of a a new electric Volkswagen model ID.3 in Zwickau

This cost reduction is one of the reasons that Volkswagen is confident it can shift from making combustion-engined to electric cars without eroding the company's profit margin, VW said.

Latest comments

Time to buy real estate in Norway and Iceland.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.