From the article: “HEFEI, China/BERLIN Nov 24 (Reuters) - Volkswagen said on Friday it will develop a new platform for entry-level electric vehicles in China and use more local components to lower costs, as the German company seeks to regain lost ground in the world’s biggest auto market. The new architecture, known as the A Main Platform, will be made specifically to Chinese consumer tastes with regards to the battery, electric drive and electric motor, China chief Ralf Brandstaetter told reporters during a visit to its new EV development and procurement centre in the central city of Hefei.”
“Volkswagen is pushing to expand its product range in China to attract customers in the entry- and mid-level segment of EVs in particular, with its current offering priced above that of many Chinese electric-only rivals. It plans to develop four models priced between 140,000 yuan ($19,400) and 170,000 yuan on the new platform to compete with rivals in a segment dominated by gasoline cars currently, Brandstaetter said. The cars would be produced by Volkswagen’s joint ventures with SAIC and FAW, he added.”
Note: this was originally posted to /r/EuroEV
The problem is that at those prices, Volkswagen isn’t making enough money in China.
They’re willing to take short-to-medium losses as it’s about survival. 38% of VW sales were in China last year, and they just can’t afford to give up market share for good. They have, and have to burn the cash.
The Japanese though seem to have largely given up. While VW was busying upping its game in China, all Toyota did was assigning the bz4X a Chinese name…
Short-to-medium term losses are inherently the problem.