EV sales strategy


dalab

Banned
Silver Arrow Expert
Interesting as losing 8,000 euros per car sold, it is better than the fines that will have to pay for emissions, this can change the landscape a lot prostituting the market and affect those who do things correctly
At least there are consumers who will benefit, but it can be detrimental and affect thousands of other companies' jobs.

The cheap electric car is not yet profitable: Škoda could lose 8,000 euros with each CITIGOe iV sold


Objective: 95 g / km of CO₂
A priori, it is surprising that brands of such an important group as VAG decide to sell lost cars consciously and even more when that same group has an entire arsenal of electric cars designed from scratch as such in preparation. The answer is obvious. It is a quick way to reduce the average emissions agreed by the European Commission of 95 g / km of CO₂.


The Škoda CITIGOe iV electric or the SEAT Mii electric are two electric cars whose starting prices are around 21,000 euros. That very tight price, for an electric 260 km of autonomy, is the main selling point.
How can they be between 8,000 and 10,000 euros cheaper than a Peugeot e208 or an Opel Corsa-e? Because everything indicates that these brands would lose money with each unit sold. At least, it is the case of Škoda CITIGOe iV which costs in Spain from 22,370 euros, according to AutoForum.

The VAG group's offensive in the electric car segment is not limited to the Volkswagen ID.3 and the future models that will make up its ID range, such as the SUV ID.4. Its short-term strategy also involves affordable urban cars, such as the Škoda CITIGOe iV electric, the SEAT Mii electric and the Volkswagen e-Up !.
All three are basically the same urban car (segment A), each with its own style, tuning and positioning, but all three offer a 61 kW (83 hp) engine, a 32.3 kWh lithium-ion battery and an autonomy that is around 260 km in the WLTP cycle. And all three have a surprisingly low price compared to the other possible rivals
The new Renault Zoe is another urban electric car, although it is riding between segment A and B, which costs from 30,115 euros with the 52 kWh battery in ownership (Renault continues, for now, offering the battery for rent for customers who they wish). In any case, it offers 390 km of autonomy with a 135 hp engine, so it can be understood that it is more expensive than the trio of the VAG group.

If we look at the PSA side, it is true that an Opel Corsa-e or Peugeot e-208 that cost entry 30,000 euros and are cars of the B segment. That is, they are larger, have more equipment, but also have an autonomy that It does not exceed 300 km in the WLTP cycle when the CITIGOe iV and the Mii electric reach 260 km.

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Skoda Citigo E Iv 71
In other words, the low price of Škoda (and therefore the other two models) is not only due to what is called in this industry "decontenting", that is, to reduce equipment. The reality is that these cars would be sold at a loss.
According to the AutoForum source, which works in Škoda, the Czech firm would lose between 210,000 and 220,000 crowns with each unit sold. The change would be about 8,000 euros. And like the SEAT Mii electric and the Volkswagen e-Up! They have similar prices, it is impossible not to suspect that the situation is similar for these two brands.

motorpasion.com/industria/coche-electrico-barato-no-rentable-skoda-podria-perder-8-000-euros-cada-citigoe-iv-vendido
 
No surprises. Will continue to happen so long as ICE & EVs are being built on the same underpinnings with a shared platform. Hard to let go of a legacy you’ve built over 100 years.
 
Well I think this article is pure Fake News! VAG loosing €8.000 on each E-Up & Co... MSRP of the E-Up in Germany €21.975 which is +/- €18.500 without VAT... So an E-UP would cost €26.500 to build ($29.420 USD) which is more than a Tesla Model 3 ($28.000) according to article from 2018.... VAG is likely to make a profit on every single E-Up, Citigo E iV and Mii Electric they make.

The car has been in production since late 2011 for the gas model, late 2013 for the E-Up... The car has paid for his development cost by now.
VAG reportedly pays less than $100 per kwh for the ID3 battery and this likely to be true for the E-Up.
The E-Up cost €9.000 more than the equivalent Up with an ICE in Germany... I would say this is enough to pay for the battery, motor contoller, electric engine...

German : www .wiwo . de/technologie/mobilitaet/elektroauto-zerlegt-tesla-model-3-kann-gewinn-abwerfen/22625806.html

English : qz . com/1294282/the-tesla-model-3-cost-28000-to-build-german-engineers-say-and-it-still-may-not-be-profitable/
 
Well I think this article is pure Fake News! VAG loosing €8.000 on each E-Up & Co... MSRP of the E-Up in Germany €21.975 which is +/- €18.500 without VAT... So an E-UP would cost €26.500 to build ($29.420 USD) which is more than a Tesla Model 3 ($28.000) according to article from 2018.... VAG is likely to make a profit on every single E-Up, Ci...

I agree. These cars are 10k cars to make. Not much more. Selling them for double does not leave a loss IMO.

Also, a Peugeot 208 is VW Polo class, not VW UP! class. Another mistake.
 
I agree. These cars are 10k cars to make. Not much more. Selling them for double does not leave a loss IMO.

Also, a Peugeot 208 is VW Polo class, not VW UP! class. Another mistake.

I suspect that these cost projections encompass elements such as facility transitions, distribution/service recalibration as well as inevitable redundancy/severance factors. But when it comes to the specific cost of manufacturing a unit, I'm also inclined to believe that the BEV era will quickly usher decisively reduced unit cost expenses vis-a-vis ICE configurations. The degree of technical/technological conformity paired with an increasing number of forged collaborations and resulting economies of scale are arguments that support this scenario.
 

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