Volkswagen AG (OTC:VWAGY) announced Thursday it was stepping up its “electric offensive” and producing its first all-electric SUV under its ID brand in Germany.
The compact SUV’s production has commenced at the automaker’s Zwickau plant, which has been converted at the cost of $1.4 billion to produce 300,000 cars electric vehicles per year, the company said in a statement.
Volkswagen says it plans to sell the vehicle in Europe, China, and later in the United States.
"With the ID.4, Volkswagen is adding an all-electric vehicle to its offering in the compact SUV class, the world’s largest growth segment,” said the company's CEO Ralf Brandstätter.
The German carmaker claims that its new electric SUV can cover a range of 310.68 miles (500 kms).
Why It Matters
Brandstätter said the U.S. production of the ID.4 is slated to begin in 2022 in Chattanooga, Tennessee, CNN reported.
LG Chem Ltd (OTC:LGCLF) CEO Hak Cheol Shin said while the EV industry is growing fast, the penetration rate remains low at about 3% — but that could change by 2025, with penetration increasing up to 10%.
Volkswagen OTC shares closed nearly 0.9% lower at $17.64 on Thursday.
Photo courtesy: Volkswagen AG