Volkswagen will not enter Tesla’s price war, at least for now.

Volkswagen’s CEO assures that he will not make a move and that the prices of its electric cars will not be reduced.

The beginning of the year 2023 has been really busy and we could say that Tesla has shaken the hive and has caused a chain effect in many automotive manufacturers.

Tesla’s move to make a generalised and quite substantial price cut on its electric cars has led other manufacturers to make a similar move, as has been the case with Xpeng or Ford with the Mustang Mach-E in the United States, although the American brand has confirmed that there will be no price cut in Europe (at least for now).

However, European manufacturers have not yet made any moves, and the new prices of Tesla cars in Europe make them the favourite vehicles to buy, as the other proposals have a higher price and lower performance.

Volkswagen CEO Oliver Blume has clarified the brand’s stance on the alleged price war over electric cars, telling local German newspapers that the brand already has a clear pricing strategy and will not change it.

“We have a clear pricing strategy and we are focusing on reliability. We are confident in the strength of our products and brands.”

The big question that may arise is whether Volkswagen really doesn’t want to enter the price war or whether it really can’t, as it is aware that if it enters this game it could end up losing and that would mean reducing margins and even selling vehicles losing money.

Let’s remember that Tesla is currently one of the automotive manufacturers worldwide with the highest margin per car sold, which allows it to reduce its margin in exchange for offering lower prices on its cars.

The original text of this article has been extracted from this link. Thanks.

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