A cool, sleek electric Volkswagen (VWAGY) sedan won't be arriving on U.S. shores any time soon, as stateside demand for EVs wane in favor of gas-electric hybrid technology.
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Volkswagen
As per an announcement by Volkswagen on May 22, the German auto giant is indefinitely delaying the U.S. and Canadian release of one of its most anticipated models: the electric ID.7, providing no timeline for its arrival on the continent.
Volkswagen's ID.7 — a model that has been on sale in Europe since 2023, is slated to be the replacement for the Passat and Arteon mid-size sedans. In its short statement, Volkswagen alludes to "current market conditions" being the reason for the delay.
"Volkswagen is committed to making market-driven choices while listening to our customers," the statement read. "As market dynamics continue to change, Volkswagen is delaying the introduction of the ID.7 sedan in the U.S. and Canada."
Though VW is delaying the release of its mid-size electric sedan in the States, the automaker mentioned that it is prepared to release the Microbus-inspired ID.Buzz in Q4 2024 and claimed it is still "committed to electric mobility," noting recent improvements to its Tennessee-built ID.4 crossover SUV for 2024.
VW's gateway to hybrids:
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The news of the ID.7's indefinite delay comes as Volkswagen tries to respond to evolving market demands in the United States.
In a recent interview with Automotive News, VW Group of America CEO Pablo Di Si said that in that recent talks with dealers showed there were positive reactions to plug-in hybrids as well as pushback on EVs by consumers.
“The sentiment is the ICE, the plug-in hybrids are picking up,” Di Si said. “There’s some concern, some pushback on electric vehicles from consumers, particularly on the charging infrastructure. Nothing that will alter the long-term view, I would say. This transition of having more infrastructure and having more renewable energy will be key for more people to convert into electric vehicles because the lineup of vehicles is improving every day.”
Di Si did not specifically disclose which models will be coming soon, but he confirmed that the brand is working to get hybrid vehicles into its U.S. dealers.
“The dealers are asking for it. The consumers are asking for it,” he told Auto News. “We have some really good news internally, in terms of our product portfolio. I will not discuss it today. But we have good news that I’d like to share first with the team and then with the dealers.”
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Though Volkswagen does not sell any plug-ins or series-hybrid cars in the United States, they do so in other markets, including its native continent; a critical fact that can save the automaker billions in development costs.
In his AutoNews interview, Di Si noted that Volkswagen has recently released a plug-in hybrid version of the popular Tiguan crossover SUV in Europe, and can easily use such tech on any model it wishes to sell as a hybrid in the States.
"We're moving forward. Fast," Di Si said. "We don't need to start from zero. We have an incredible product in Germany, in Europe, with a Tiguan plug-in hybrid. We just launched that three or four weeks ago. It has 100 km of electric range on the European cycle."
"But it's good technology, a very nice car. It will be just transferring that type of technology to us."
Volkswagen, trading on OTC markets as (VWAGY ) is selling at $15.04 per share, up 1.93% at the time of writing.
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