Photo: Volkswagen
Volkswagen's problems are getting worse as the German carmaker announced that it would delay ID.7 deliveries in the US and Canada. The electric sedan would start shipping to North American customers in the third quarter. The German carmaker offered no update on the timeline for the US launch but claimed that the ID.7 saw higher-than-expected demand in Europe.
Things aren't going very well for Volkswagen, whose EV strategy didn't pan out. The German carmaker was forced to cut shifts at its main EV factories in Germany. Things look even worse in China, where local carmakers are slowly pushing it out of the market. This is a disaster, considering that China is Volkswagen's most important market. This prompted the carmaker to reconsider its China goals and partner with local carmakers like Xpeng in a bid to regain customers' confidence.
Volkswagen's problems started with the disaster at its software subsidiary Cariad, which caused delays and cancelations of the Group's EV projects. Volkswagen also halted the development of new architectures and extended the lifecycle of its first and only EV platform, the MEB. This has grown long in the tooth, and customers have noticed, especially in China, where the competition in the EV market is fierce.
This is why the decision to build the company's electric flagship, the ID.7, using the same MEB architecture as the smaller EVs might not have been the brightest idea. Volkswagen claims that demand for the ID.7 in Europe and especially Germany is off the hook, although the reception in China has been lackluster at best. Now, Volkswagen announced that the ID.7 would not launch in North America in the third quarter, as planned.
Volkswagen didn't provide a reason for the decision and couldn't tell when the ID.7 would start deliveries in the US and Canada. The closest thing to an explanation was a vague reference to "market dynamics." Volkswagen claims that the introduction of the ID.7 Tourer, the wagon variant of the electric model, energized sales in Germany. However, in North America, customers are moving away from sedans and prefer buying SUVs instead. If that's the cause of the delivery delays, the ID.7 might not make it across the Ocean.
In March, Volkswagen announced the trims and configurations for the US market, although the prices have not yet been revealed. If we take the European prices as a reference, the ID.7 will not be cheap. In Germany, the ID.7 starts at 57,000 euros, which translates into about $62,000. However, the US model should be better equipped, which means it might be even more expensive.
The ID.7 is a direct competitor to the Tesla Model S, which starts at $72,990. On the other hand, even Tesla sells very few Molde S sedans, which might explain why Volkswagen is having second thoughts. In March, Volkswagen Group of America CEO Pablo Di Si told Automotive News that he didn't expect the ID.7 to have significant sales in the US. However, the electric sedan, together with the ID. Buzz, could boost brand awareness and function as a halo vehicle.
Volkswagen's problems started with the disaster at its software subsidiary Cariad, which caused delays and cancelations of the Group's EV projects. Volkswagen also halted the development of new architectures and extended the lifecycle of its first and only EV platform, the MEB. This has grown long in the tooth, and customers have noticed, especially in China, where the competition in the EV market is fierce.
This is why the decision to build the company's electric flagship, the ID.7, using the same MEB architecture as the smaller EVs might not have been the brightest idea. Volkswagen claims that demand for the ID.7 in Europe and especially Germany is off the hook, although the reception in China has been lackluster at best. Now, Volkswagen announced that the ID.7 would not launch in North America in the third quarter, as planned.
Volkswagen didn't provide a reason for the decision and couldn't tell when the ID.7 would start deliveries in the US and Canada. The closest thing to an explanation was a vague reference to "market dynamics." Volkswagen claims that the introduction of the ID.7 Tourer, the wagon variant of the electric model, energized sales in Germany. However, in North America, customers are moving away from sedans and prefer buying SUVs instead. If that's the cause of the delivery delays, the ID.7 might not make it across the Ocean.
In March, Volkswagen announced the trims and configurations for the US market, although the prices have not yet been revealed. If we take the European prices as a reference, the ID.7 will not be cheap. In Germany, the ID.7 starts at 57,000 euros, which translates into about $62,000. However, the US model should be better equipped, which means it might be even more expensive.
The ID.7 is a direct competitor to the Tesla Model S, which starts at $72,990. On the other hand, even Tesla sells very few Molde S sedans, which might explain why Volkswagen is having second thoughts. In March, Volkswagen Group of America CEO Pablo Di Si told Automotive News that he didn't expect the ID.7 to have significant sales in the US. However, the electric sedan, together with the ID. Buzz, could boost brand awareness and function as a halo vehicle.
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