The VW brand director confirms the new price for the basic model of the ID.3.
(Photo: VW)
Dusseldorf The Volkswagen brand will soon be offering its ID.3 electric model again for less than 40,000 euros. Sales manager Imelda Labbé confirmed this to the Handelsblatt and quoted a price of 39,995 euros for a new basic model. The price is to be communicated to dealers on Monday and will probably be visible in the VW configurator at the end of March.
Volkswagen presented a facelift for the ID.3 on Wednesday, but did not officially name a price. On the occasion of the new launch, the Handelsblatt reported that the price for the basic version of the electric car will be less than 40,000 euros.
Labbé emphasizes that the price for the basic model has remained almost the same. The old ID.3 base model cost 38,060 euros.
Before the car’s facelift, VW had reduced the trim levels and removed the base model from the range. The cheapest ID.3 currently costs just under 44,000 euros on the Volkswagen website, but the equipment is also of a higher quality. Psychologically, the step has the effect of a price reduction for VW customers.
VW ID.3: Soon with a smaller battery?
Labbé also indicated that the ID.3 could also be offered with a smaller battery in the future, which should lower the entry price even further. “We’re checking that,” said the brand director, but the supply situation would have to improve further for this to happen. VW wants to “further spread electromobility, and attractive entry-level prices are an important lever for this”.
In January, CEO Blume had rejected a price war with US competitor Tesla in a newspaper interview. “We have a clear pricing strategy and rely on reliability. We trust in the strength of our products and brands,” said Blume to the “Frankfurter Allgemeine Sonntagszeitung” at the time. VW wants to be “a leading global” supplier of electric cars, but this should be achieved through “profitable growth”.
VW ID.3: Volkswagen sells electric cars in the agency model
Tesla has repeatedly reduced prices in the USA and Europe in recent weeks. For its part, VW announced in February that it would raise prices for combustion engines by an average of 4.4 percent.
The new price of the ID.3 is quite meaningful for customers because Volkswagen sells its electric models in the so-called “agency model”. This means that the car manufacturer has de facto sovereignty over prices. The independent car dealers act as agents in the construct, i.e. simple sales representatives who are only allowed to sell cars on behalf of a manufacturer.
More: How BMW and VW want to end discount bargaining