Volkswagen shares are lower Friday, as reports suggest the German carmaker is planning to sell an electric model vehicle for around the €20,000 mark, undercutting rival, Tesla. According to a Reuters article, VW’s electric vehicle plans are set to be discussed at a supervisory meeting, next week.
By 1050 BST, VW shares were 2.93% lower at €146.86. The stock has been moving higher in recent weeks.
VW’s electric vehicle push
Following the global emissions scandal, which has already cost the car manufacturer millions and could still result in further claims, VW’s CEO Herbert Diess has warned that Germany’s car industry is in trouble.
However, in order to avoid that and also to safeguard German jobs and skills, VW has made the decision to invest heavily in the electric car industry.
The MEB entry vehicle, which could be made at a rate of 200,000 per year, will be under discussion, while other planned electric vehicles will also face scrutiny.
For VW, the push into the electric vehicle segment of the car manufacturing industry is becoming increasingly crucial. German cities are beginning to ban diesel engines. And, new, tougher, emissions rules have made it more difficult – and expensive – for VW to produce its wide range of diesel-powered engines.
VW has more work to do on compliance
Underscoring the difficulties the car manufacturer continues to face, were comments Thursday from an US compliance officer.
Reports state that Larry Thompson, who is currently an appointed compliance auditor for VW, said that while progress is being made, VW still has more to do, in order for its compliance procedures to be acceptable in the wake of the emissions cheating scandal.
While VW has agreed to spend money on its vehicles to ensure further diesel emissions reductions. However, the procedure to confirm that the promised necessary changes, updates and checks are carried out, requires more attention.