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Volkswagen AG (OTC: VWAGY) announced Thursday that it will intensify its “electric offensive” and generate its first 100 percent electric SUV under its identification logo in Germany.
What happened
Production of the compact SUV began at the automaker’s Zwickau plant, which was switched to a $1.4 billion charge to produce 300,000 year-consistent electric vehicles, the company said in a statement.
Volkswagen has announced plans for 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 category, the world’s largest expansion,” said Ralf Brandstotter, the company’s CEO.
The German car manufacturer says its new electric SUV can travel a distance of 500 km (310.68 miles).
Why it’s important
Brandstotter said U.S. ID.4 production is expected to begin in 2022 in Chattanooga, Tennessee, CNN reported.
The new electric vehicle may be competing with Tesla Inc (NASDAQ: TSLA) and others in the developing electric vehicle market.
Major automakers are stepping up their electric vehicle set. Hyundai Motor Co (OTC: HYMTF) last week announced the launch of its “Ioniq” electric car logo.
Hak Cheol Shin, CEO of LG Chem Ltd (OTC: LGCLF), said that if the electric vehicle industry grows rapidly, penetration remains low at around 3%; however, this could replace until 2025, with penetration expanding to 10%.
Price action
Volkswagen OTC shares closed on Thursday nearly 0.9% to $17.64.
Photo courtesy: Volkswagen AG
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