Volkswagen Has a Shiny Tesla Killer

The German automaker just sent a message to rivals in China and America, the world's two largest markets.

Electric vehicles have become the new sinews of war in the automotive industry. 

This new era is driven by Tesla and its whimsical and charismatic CEO Elon Musk, who succeeded in convincing public authorities and consumers that electric vehicles equipped with the latest tech tools are the future.

Investors did not hesitate to reward Musk and Tesla  (TSLA) - Get Free Report for this. The Austin, Texas-based carmaker has thus become by far the world's leading automotive group by market value, with a stock market capitalization of almost $600 billion at last check. Toyota  (TM) - Get Free Report, which was the world's biggest car seller in 2022, has a market value of $187 billion, while German giant Volkswagen  (VWAGY) - Get Free Report has a market capitalization of $85 billion.

If the gap with its competitors may seem insurmountable, the latter have not given up and are even determined to challenge Tesla on almost all terrains. This is the case of Volkswagen, which is trying to overcome software problems that are slowing its ambitions in the European and Chinese markets.

A Huge Range

Volkswagen has just unveiled the ID.7, its very first global fully electric sedan, in Berlin, Germany and Shanghai, China. The car, which has a base price of about $66,000, is set to compete with the Tesla Model 3 et Chinese models from startups like BYD, NIO and others. 

The new Volkswagen ID.7 stands out as a revolutionary electric sedan in the large touring segment, offering impressive range, exceptional comfort and innovative technologies. It is equipped with a new generation of high-efficiency electric motors, developing 210 kW/286 hp. These engines, the most powerful in the Volkswagen ID range, allow the ID.7 to reach a range of up to 700 km (435 miles) on a charge and charging capacities of up to about 200 kW will be possible. Optimized aerodynamics and improved engine efficiency and thermal management also contribute to this remarkable performance.

The new sedan also offers a spacious passenger compartment thanks to its extended wheelbase and shortened overhangs. It is also equipped with a new display and control concept, incorporating a 38 cm screen for the infotainment system, an augmented reality head-up display, a new control for the climate control system and customizable favorite keys.

Some of the options include massaging seats, a  panoramic glass roof. It is equipped with the new "IDA” voice assistant, allowing voice control for many functions. In addition, the ID.7 incorporates advanced assistance systems, such as Travel Assist, capable of steering the car laterally and longitudinally when needed. The Travel Assist system also enables the ID.7 to provide lane change assistance on multi-lane highways from speeds of 90 km/h. 

Agressive Offensive

"With the ID.7 we are taking the next step in our electric offensive," Thomas Schäfer, CEO of Volkswagen Passenger Cars, said in the press release. "The limousine offers a high level of comfort and long ranges."

Schäfer said by 2026, Volkswagen will offer the widest electric range of all manufacturers in Europe – from the entry-level model for less than 25,000 euros up to the ID.7 as the new top model within the ID. family. 

"Our goal is to achieve an electric car share of 80 percent in Europe by 2030. As from 2033, Volkswagen will produce only electric vehicles in Europe.”

The ID.7 launch is planned for this year in Europe and China, and from 2024 in North America. It will be produced at Volkswagen's plant in Emden, Germany, while the version for the Chinese market will be produced locally in China. This production rollout aims to meet the growing demand for electric vehicles in these key markets.

Volkswagen hopes that the ID.7 will allow it to turn the page on technical problems such as a malfunctioning navigation system and a glitchy smartphone app that have so far impacted the rollout of the ID series.

The model will, however, go off the rails in a hyper-competitive market. Tesla drastically lowered its prices in China and the United States and was followed by Chinese competitors.

Volkswagen has set itself the goal of achieving an 80% share of electric vehicles in all its sales in Europe by 2030. From 2033, the company will only build electric vehicles at its European sites, thus affirming its commitment to sustainable mobility and the reduction of CO2 emissions.

The new ID.7 is just one of ten new electric models that Volkswagen plans to launch on the market by 2026, including the new ID.3, the ID.Buzz with extended wheelbase.