German automaker Volkswagen Group has set its sights on capturing a larger share of the US market by prioritizing electric vehicle (EV) production in North America. With the aim of delivering at least 25 all-electric models over the next seven years, Volkswagen plans to adhere to the new terms laid out in the Biden Administration’s Inflation Reduction Act, which will allow the company’s EVs to qualify for the entire $7,500 federal tax credit.
Although Volkswagen may not be leading the all-electric charge in terms of technology, it is making daily moves to pivot toward BEV production in order to deliver affordable and enticing vehicles to consumers. The company’s North American production footprint currently includes its ID.4 EV, and it will soon be joined by a new battery plant to support local EV production and help Volkswagen’s future models qualify for federal tax credits. South Carolina will be the new home of the company’s next production facility, where its Scout sub-brand EVs will be built.
According to Volkswagen Group of America CEO Paulo Di Si, the company plans to sell 25 BEV models in the US by 2030 – all of which should qualify for the Inflation Reduction Act’s full $7,500 federal tax credit. To avoid repeating past mistakes in the US market, Volkswagen is hiring designers and engineers to cater its future EVs specifically to US consumers. As Di Si said in a recent Bloomberg Television interview, “We have a great opportunity in the US. I believe this is the right time and the right place.”
Volkswagen Group currently has a 4% grip on the US market, but it hopes to double that figure to 10% by the end of the decade. To achieve this, the company plans to broaden availability stateside, using federal tax credits as a catalyst. While Volkswagen’s passenger car brand currently holds a meager 1.8% of the US market today, it hopes to reach 5% by 2030. The overall Group hopes to achieve the aforementioned target of 10% in the same period with the help of some of its more popular, premium marques, like Audi and Porsche.
The company has already invested $7 billion in US production and plans to begin production of its ID.Buzz electric van in 2024. While the automaker faces a tall task to achieve its US market targets, the CEO remains confident in the Group’s plans. Volkswagen’s success in the US market will depend on its ability to expand its assembly lines to models beyond its namesake brand.
