Unlike some other carmakers, Volkswagen has no intention to slash its EV prices, CEO Oliver Blume said in an interview to Frankfurter Allgemeine. He explained that overzealous price revisions may confuse buyers.
Blume said that VW followed a clear-cut profit-focused price policy and had no intention to deviate from it. The company’s plans to become one of the world’s leading electric car manufacturers did not mean it was willing to sacrifice everything for that goal. Reckless price-cutting would eventually result in car businesses trapped in a downward spiral, with lower profits across the board and no benefits for anyone.
Tesla Inc. was the first EV maker to start the price war by slashing prices across the board on all of its main markets, including the United States and China. Several Chinese automakers followed suit, and so did Ford, which introduced a discount on its Mustang Mach-E SUV.