German motor-vehicle maker Volkswagen has unveiled the global version of its first fully electric sport utility vehicle - the ID.4. The company wants the new vehicle to be the jumping-off point for its eventual electrification.
The company said the new model would be produced at five of its factories in three continents. It said the vehicle, which will be priced starting at $39,995, should become available in the U.S. by early next year. Volkswagen plans to leverage its international footprint to lower costs - which it expects will help in its accelerated adoption.
Volkswagen Group of America's chief executive officer Scott Keogh said the final vehicle that will be made available is going to be a "breathtaking global car."
Volkswagen officially opened online reservations for its new model. The new electric SUV will initially be made available as a rear-wheel-drive vehicle with an engine capable of 201 horsepower and 228 pounds-feet of torque. Volkswagen eventually plans to release an all-wheel-drive version capable of 302 horsepower.
The initial batch of the ID.4 that will be made available in the U.S. next year will be imported from Germany. This will then change once Volkswagen begins production at its manufacturing facility in Tennessee in 2022. Volkswagen expects the price of the ID.4 to drop to around $35,000 once domestic production begins.
Volkswagen will be producing the ID.4 for the Chinese market at two separate manufacturing plants within the country. It also has two plants in Europe for its home market.
Keogh said the company would still have a positive margin on the new vehicles. However, the company is still not yet where it wants to be in terms of what it is spending on the vehicle's batteries.
For most electric vehicles, batteries are the most expensive component. With continued development costs are getting lower. Keogh declined to say how much exactly Volkswagen was spending on batteries.
