Summary
– Volkswagen is delaying the launch of the all-electric ID.7 sedan in the US due to dealer concerns
– The ID.7 was expected to launch in the US and Canada in the next few months, with prices starting around $62,000
– VW dealers are cautious about the ID.7, expressing concern about its pricing and competitiveness
– The ID.7 is a sedan, comparable in size to Volkswagen’s discontinued Passat, with limited demand for expensive electric sedans in the US
– VW could benefit from delaying the ID.7 launch to adjust prices or features to attract more buyers, as sedans are not selling as well in the US compared to SUVs and trucks
Article
Volkswagen has delayed the launch of its new all-electric ID.7 sedan in the US due to concerns expressed by dealers. The ID.7 was originally scheduled to launch in the next few months in the US and Canada, but the release has been pushed back indefinitely. The dealers are cautious about the new EV, with concerns about its pricing and competitiveness in the market. The ID.7 is expected to be priced around $50,000 to $60,000 without incentives, making it an expensive option for American consumers.
The ID.7 is designed to be a sedan, similar in size to Volkswagen’s discontinued Passat, with a bigger back seat and more head and shoulder room. However, dealers were expecting a vehicle more like the ID Space Vizzion concept shown in 2018. The ID.7 Tourer, recently launched in Europe, is closer to the concept dealers were looking for. Despite its design and features, some dealers are skeptical about the demand for an expensive electric sedan in the US market, especially without the added incentive of the $7,500 EV tax credit.
Volkswagen faces challenges with the ID.7 being built in Germany and not qualifying for the EV tax credit. Dealers like Anthony Scala from City Auto Group in Chicago believe that the starting price of around $60,000 is too high for a sedan without a prestigious logo like Mercedes-Benz or BMW. There are concerns that without significant incentives, it would be difficult to move inventory of the ID.7 in the US market. Managers are not seeing strong demand for the new sedan, unlike the upcoming ID Buzz EV minivan, set to hit the US market by the end of the year.
The delay in launching the ID.7 could be beneficial for Volkswagen if the automaker is able to adjust prices or features to attract buyers. However, with the competitive landscape of low-cost EVs increasing in the US market, the expensive starting price of the ID.7 could hinder its sales. Sedans are not selling as well in the US compared to other global auto markets, where SUVs and trucks are gaining market share. It remains to be seen how Volkswagen will respond to dealer concerns and adjust its strategy for the ID.7’s launch in the US.
Overall, the decision to delay the US-bound ID.7 raises questions about Volkswagen’s strategy in the electric vehicle market. Dealers are expressing caution about the pricing and competitiveness of the new sedan, and there are concerns about the lack of incentives and the vehicle being built in Germany. Volkswagen may need to reevaluate its approach to launching the ID.7 in order to attract buyers and compete in the growing EV market. The delay could be an opportunity for the automaker to make necessary adjustments and ensure the success of the ID.7 in the US market.
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