Volkswagen Group’s VWAGY used ID.4 crossovers are currently the only electric vehicles in the U.S. that cost more than the new ones, data from app-based car insurance comparison firm Jerry showed.
What Happened: Sticker prices of used ID.4 electric crossover, which competes with Tesla Inc’s TSLA more expensive Model Y compact crossover, and Ford Motor Co’s F Mustang Mach-E are more than the new ones.
Volkswagen started shipping the ID.4 that it currently makes in Zwickau, Germany in February 2021. The plant in Europe is currently facing wiring harnessing shortages and had to reportedly halt production last month for four days due to Russia’s invasion of Ukraine.
“In terms of EVs, most new models cost more than used at this time. There is one exception, the Volkswagen ID.4 which costs about $808 above MSRP nationally,” said Henry Hoenig, data journalist at Jerry.
“Like most automakers, Volkswagen has faced production disruptions this year, and interest in their EV line has grown. So American drivers may have looked for used models if they couldn’t find a new one.”
The ID.4 goes on sale at $40,760 before federal tax incentives and has an EPA range of 280 miles. In comparison, the Model Y is priced between $62,990 and $67,990 range, before tax incentives. Mustang Mach-E goes on sale at a starting price of $43,895, not including the incentives.
Why It Matters: Volkswagen CEO Herbert Diess had earlier this month told analysts in a call that the automaker has grabbed 8% electric vehicle market share in the United States.
“The ID.4 is the fastest selling vehicle in this lineup, with nearly 17,000 units sold and an order bank of 21,000 reservations…and I am looking forward to start the local production of the ID.4 in Chattanooga in about four months time.” Diess said.
Volkswagen did not respond to Benzinga’s request for a comment outside of business hours.
See Also: Volkswagen To Shift More Production To China, North America As Russia-Ukraine War Roils Europe Supply Chain
The automaker announced plans earlier this month to spend $7.1 billion over the next five years on electric vehicle projects in North America, as the German automaker tries catching up with industry leader Tesla at its home turf and other U.S. legacy rivals.
Volkswagen aims to launch 25 new EV models in North America through 2030. The plan includes preparing its Chattanooga, Tennessee facilities for local EV production, including the assembly of the ID.4 SUV, starting this year.
Volkswagen aims to eventually phase out gas-powered vehicles from its American lineup at the beginning of the next decade.
Price Action: VWAGY stock closed 1.2% lower at $24 a share on Friday.
Photo: Courtesy of Volkswagen