Germany’s Volkswagen is said to be developing a cheaper electric car which would sell for under €20,000 (or $23,000). If successful, this would thus undercut Tesla’s Model 3, its cheapest electric car, by almost $12,000.
In addition, VW is reportedly looking to protect German jobs by converting three of its current factories in Europe – in Emden, Zwickau and Hanover – to manufacture these new, low-cost electric cars.
Known as ‘MEB entry’, the car is being prepared for an initial production volume of 200,000 vehicles; meanwhile a mid-sized sedan, the I.D. Aero, would have a production volume of 100,000 units.
The plans for the new vehicle will be discussed at a supervisory board meeting held on November 16, when VW is also expected to discuss alliances with battery cell manufacturer SK Innovation and with its rival Ford, as reported by Reuters.