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Volkswagen:Competition From China EVs: Difference between revisions
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== Profitability | == Profitability And Production Costs Of European Made EVs == | ||
==== Are European Made EVs Profitable? ==== | ==== Are European Made EVs Profitable? ==== | ||
* According to a March 2024 study by Boston Consulting Group, OEMs currently make a lose of $6,000 for every EV sold for $50,000 (after tax credits) in Unites States. The firm examined a number of OEMS including those producing in Europe such as Volkswagen<ref>https://www.bcg.com/publications/2023/reducing-the-electric-vehicle-manufacturing-costs</ref>. | * According to a March 2024 study by Boston Consulting Group (BCG), OEMs currently make a lose of $6,000 for every EV sold for $50,000 (after tax credits) in Unites States. The firm examined a number of OEMS including those producing in Europe such as Volkswagen<ref>https://www.bcg.com/publications/2023/reducing-the-electric-vehicle-manufacturing-costs</ref>. | ||
* Ralf Brandstätter, CEO of Volkswagen China said in March that the company is working a new EV architecture in China which would reduce costs by 40% enabling it to be profitable at current price levels<ref>https://apnews.com/article/china-volkswagen-auto-show-ev-41c96ad830e60accfd7cacc91d355189</ref>. | * Ralf Brandstätter, CEO of Volkswagen China said in March that the company is working a new EV architecture in China which would reduce costs by 40% enabling it to be profitable at current price levels<ref>https://apnews.com/article/china-volkswagen-auto-show-ev-41c96ad830e60accfd7cacc91d355189</ref>. | ||
* In 2019, Volkswagen said that each of it's ID.3 model will make a lose of 3,000 euros, a situation that could continue until 2025<ref>https://www.automobile-propre.com/articles/volkswagen-i-d-neo-la-version-48-kwh-a-24-000-euros-bonus-deduit/</ref>. | * In 2019, Volkswagen said that each of it's ID.3 model will make a lose of 3,000 euros, a situation that could continue until 2025<ref>https://www.automobile-propre.com/articles/volkswagen-i-d-neo-la-version-48-kwh-a-24-000-euros-bonus-deduit/</ref>. | ||
* In 2021, a Bernstein analyst, Arndt Ellinghorst estimated that battery prices would have to decline to $60 per kilowatt from $140 per kilowatt-hour for the likes of Skoda and Sixt to make EVs profitably<ref>https://www.businesstimes.com.sg/companies-markets/transport-logistics/carmakers-starting-to-see-improving-margins-on-electric-cars</ref>.<br /> | * In 2021, a Bernstein analyst, Arndt Ellinghorst estimated that battery prices would have to decline to $60 per kilowatt from $140 per kilowatt-hour for the likes of Skoda and Sixt to make EVs profitably<ref>https://www.businesstimes.com.sg/companies-markets/transport-logistics/carmakers-starting-to-see-improving-margins-on-electric-cars</ref>. | ||
* An analysis by Boston Consulting Group (BCG) established that B-segment EVs produced by European OEMs and sold at 36,000 euros make a profit of 4,000 euros. The Group established that material costs makes up up to 80% of the total delivery cost with battery costs making up 35%. | |||
[[File:BCG Analysis.png|left|thumb|828x828px|Source: BCG]] | |||
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