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Volkswagen sell electric cars for less than 20,000 to rival Tesla's dominance

Volkswagen intends to sell electric cars for less than 20,000 ($ 22,836) and protect German jobs by converting three factories to make Tesla rivals, a source familiar with the plans said.

VW and other automakers are struggling to adapt quickly enough to the strict rules introduced after the automaker was It was found that they have cheated diesel emission tests, with its chief executive, Herbert Diess, warned last month that Germany's auto industry is going extinct.

Plans for the VW electric car, known as "entry to MEB" and with a production volume of 200,000 vehicles, will be discussed at a meeting of the supervisory board on November 16, the source said.

A Volkswagen Golf GTE is being charged during a workshop prior to Auto Guangzhou in Guangzhou, China, on November 16, 2017. REUTERS / Bobby Yip – RC1D9C3882B0

Another vehicle, the Aero ID, will be built on a plant currently manufactured by the VW Passat, a medium-sized sedan, the source said.

The Wolfsburg-based automaker, which declined to comment on the plans, is also expected to discuss powerful alliances with battery manufacturer SK Innovation and rival Ford, the source said.

The November 16 strategy meeting will discuss Volkswagen's transformation plan to move from being the largest European manufacturer of combustion engine vehicles to a mass producer of electric cars, said another source familiar with the deliberations.

VW's strategy change occurs when cities begin to ban disel-powered vehicles, forcing car manufacturers to think of new ways to safeguard 600,000 German industrial jobs, of which 436,000 belong to automotive companies and their suppliers.

An electric van, the identification buzz, it will be built at the VW plant in Hannover, where its Van T6 is manufactured, the source said.

To release the production capacity of electric cars in Hannover, VW transport vans could be produced at a Ford plant in Turkey, if German unions, which occupy half of the seats on the VW board of directors, agree , add the source.

A prototype of the Tesla Model 3 is displayed in front of the Tesla Gigafactory that produces it. Reuters

A prototype of the Tesla Model 3 is displayed in front of the Tesla Gigafactory that produces it. Reuters

Exploratory talks

VW and Ford are in "exploratory talks" about an alliance to develop electric and self-sufficient vehicles and to complement each other's world production and sales footprints, Reuters I reported last month.

Ford has strong sales and profits in the United States thanks to its exposure to the lucrative segment of pickup trucks, while Volkswagen dominates the passenger car market in Europe.

The companies are considering cooperation agreements in the areas of commercial, electric and autonomous vehicles, although a final agreement is unlikely to be announced at the November 16 strategy meeting at Volkswagen, the second source said.

The details of a cooperation agreement with Ford may take until the end of the year to be finalized, the second source said. The German manufacturer is mainly focused on discussing the merits of converting its VW factories in Emden, Zwickau and Hannover, which build automobiles with a combustion engine, to the electricians under the plans being discussed by the board of directors, the source said.

Car manufacturers in Germany agreed on Thursday to spend up to 3,000 ($ 3,430) per vehicle to add more efficient exhaust filter systems to reduce diesel emissions, but they could not avoid the bans on diesel vehicles in Cologne and Bonn.