Volkswagen has disappointed its followers with the news that its new electric model, the ID.7, has been postponed in the U.S. market even before its launch. Why did Volkswagen have to pull this model? Here are the reasons behind the decision and all the details…
Volkswagen ID.7 couldn’t compete in the U.S. market! Pulled from the market
The Volkswagen ID.7 model was planned to reach U.S. dealerships by the end of this year. However, the German automotive giant unexpectedly decided to postpone the launch due to “changing market dynamics.” Interestingly, American Volkswagen dealers support this decision because they don’t want to incur losses.
U.S. dealers believe that this electric car would struggle to sell in the U.S. market and would incur significant losses. Especially with a starting price over $50,000, it’s believed that the car wouldn’t garner much interest in the U.S. Since the ID.7 is manufactured in Germany, it doesn’t qualify for the $7,500 federal tax credit when sold in the U.S., making it very expensive even before it hits the showroom.
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Dealers think that a sedan without a Mercedes-Benz, Audi, or BMW logo at this price point doesn’t stand a chance in the U.S. market. John Luciano, owner of Street Volkswagen and member of the Volkswagen National Dealer Advisory Council, states that an electric vehicle in this price range cannot be competitive.
Volkswagen’s sedan sales in the U.S. haven’t been very strong in recent years. While the Jetta remains popular, the Passat was pulled from the market due to low sales. The ID.7 was expected to replace the Passat and Arteon, but these models haven’t been very successful either. SUVs are more popular in the U.S. market, and Volkswagen is trying to adjust its model lineup to be more SUV-centric.
Since its launch in Europe, the ID.7 has mostly only seen demand in Germany. However, the North American launch date is now uncertain. This delay has cast serious doubt on the future of the ID.7 electric vehicle model in the U.S. market. If Volkswagen revises its pricing and feature strategy, the ID.7 might have a chance to succeed in the U.S. However, if this doesn’t happen, the ID.7 could become obsolete in the U.S. market before it even launches.
In light of these developments, we will see how Volkswagen shapes its strategy for the ID.7 electric vehicle model. What do you think of Volkswagen’s decision? Don’t forget to share your thoughts with us…
