Tesla’s decision to slash EV prices sent shockwaves through the industry, but Volkswagen isn’t about to crumble and follow suit. That’s according to CEO Oliver Blume who has ruled out any price cuts for its ID-badged cars and crossovers.
Earlier this week Ford responded to Tesla’s decisions to chop up to $13,000 from the price of its Model 3 and Model Y cars by reducing the price of the Mustang Mach-E by between $600 and $5,900. But speaking to reporters from Germany’s Frankfurter Allgemeine, VW’s boss said the company’s pricing structure would hold firm.
“We have a clear price strategy and rely on reliability,” Blume told the newspaper. “We trust in the strength of our products and brands.” He said he believed any brand that changed prices up and down would lose credibility and expressed concern that VW could end up trapped in a downward price spiral that eroded its profit if it followed its rivals’ lead.
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