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Tesla led with performance. Ford harnessed its icons. Kia and Hyundai leaned into tech. With its flagship EV, the ID. 4, Volkswagen created the "everyday driver for the everyday customer," the automaker's head of U.S. strategy tells Alan.  

Why it matters: The ID.4 is the first of more than two-dozen EVs that Volkswagen plans to begin selling in the U.S. by 2030.

While other automakers have sought a bold first impression, VW chose what might seem a counterintuitive strategy: leading off with a familiar-seeming SUV. 

What's happening: Volkswagen is investing $7.1 billion in North America through the next five years alone. It's an ambitious four-part strategy...

The revival of its legendary minibus, set to arrive in the U.S. as the ID.Buzz in 2024.

The return of its long-lost brand, Scout, which will introduce a pickup truck and rugged-seeming SUV.

Heavy investment in North American battery materials production and manufacturing. 

Meanwhile, VW Group is pursuing a blockbuster IPO of its cash cow Porsche — widely seen as a move to unlock yet more capital for VW's EV ambitions.

VW Group ultimately aims to double its U.S. market share to roughly 10%.

💭 Our thought bubble: There's a through-line to VW's new EV identity: sticking with what's familiar. And for good reason.

The minibus brings with it a record-crate full of good vibes. The new version, the ID.Buzz, is already attracting rave reviews ahead of its European debut next year. 

Meanwhile, current VW vehicles like the Passat, Tiguan and Atlas have built a reputation as enjoyable, if sometimes boring, cars and SUVs.

The bottom line: The ID.4 reflects this approach. It takes pains to gently welcome EV newbies and subtly introduce them to the unique features an EV can provide.

 "You don’t put a key in the lock or push a button, it just turns on. Or you just stop, put the car in park, and walk away," Reinhard Fischer, senior vice president of strategy for Volkswagen Group of America, tells Alan. 

"But maintaining the feeling that it’s an everyday car — we want people who didn’t have an EV experience to get into the car and feel at home."

1 big thing: The "everyday driver" EV

A photograph of a red VW ID.4 electric crossover SUV, from the passenger side of the vehicle.

The curvy ID.4 crossover. Photo: Alan Neuhauser/Axios

VW arranged for a fully charged ID.4 to be dropped off at my home outside Boston. I drove it all over town and on a few hourlong highway trips, Alan writes.

Why it matters: I was prepared to be underwhelmed. Coming on the heels of the Kia EV6 — an edgy crossover that takes risks and mostly succeeds — the ID.4 struck me as the ultimate crossover blob.

It delivers a strong driving experience, a roomy interior, and an infotainment system I could live with. There's something to that.

Base price: $41,230. That will drop to $37,495, for slightly less driving range, for 2023.

Price as tested: $51,265 for the Pro S all-wheel-drive model.

Range: From about 250 miles for AWD to about 280 miles for RWD.

Charge time: About 40 minutes to get from empty to the recommended 80% charge, a couple of minutes longer than comparable EVs. 

A sturdy SUV that's surprisingly nimble, with the quiet interior and smooth ride you'd expect from a VW.

An infotainment system that was not crazy-making, which seems the best we can hope for. 

A touch more power or more range would be welcome.

Some quibbles with the interior: A bump-out that's perfectly positioned to bark your knee while getting in; a switch that toggles between control of the front and rear windows — just give me a toggle for each window, please.

The bottom line: This won't get your heart racing. Its looks are arguably Steve Carrell-pre-Ryan Gosling makeover. But it's a good car that makes life easier. For my young (ish) family with strollers, baby gear, and the 1-year-old that goes with them — that's good. 

2. The BFD: Driving the ID.4

A photograph of the VW ID.4 crossover in red, in front of a house, taken from the front-right side of the vehicle.

The ID.4 can feel snub-nosed or blob-like from the outside. Photo: Alan Neuhauser/Axios

Dylan went electric, Abba brought electric-infused disco — and now VW aims to ride those wavelengths to what it hopes is a new retro-electric heyday.

Why it matters: VW is looking backward with its electric minibus and the return of its Scout badge to spark a level of excitement the brand hasn't seen from U.S. buyers since Cher stopped visiting Studio 54.

What's happening: Scout will be an independent U.S.-based company, which will allow it the flexibility to take on partners or other investors — or even go public someday, Volkswagen execs told What's Next colleague Joann Muller.

The hope is that the iconic Scout name can help the company penetrate the highly profitable American market for big SUVs and pickup trucks, which is currently dominated by  U.S. brands like Ford, Chevrolet, Jeep and Ram.

Production will start in 2026, and the aim is to sell up to 250,000 Scout-branded vehicles annually in the U.S.

Zoom out: Volkswagen is a chronic underachiever in the United States, as Joann puts it. Admitting in 2015 that it had been cheating on diesel emissions standards only worsened its reputation.

VW sees electrification as a once-in-a-lifetime opportunity to redefine itself. 

"Electrification, to me, is a reset," Scott Keogh, former president and CEO of Volkswagen Group of America, and now president and CEO of Scout, told Joann in July.

Yes, but: "God forbid you're not as good  as you remember — because I've seen that happen, too," actor Sydney Pollack tells George Clooney's character in "Michael Clayton."

We'll see if the bus and Scout bring back the va-va-voom that VW will need to crack 10% market share.

3. What's old is new again

A photograph of the VW ID.Buzz electric minibus in white and orange, taken from the front-left of the vehicle.

The two-tone ID.Buzz will reach U.S. markets in 2024. Photo: Krisztian Bocsi/Bloomberg via Getty Images

Data: Automotive News Research & Data Center. Chart: Axios Visuals 

VW sold about 4,400 of its ID.4 through the first half of this year. EV sales overall are still dominated by Tesla.

What we're watching: Expect to see VW start experimenting with new pricing models for its batteries — one which separates the cost of the battery from the cost of the car, or which ties the battery to a subscription.

"We’re looking into this, we’re playing around with concepts," Fischer tells Alan. "But we haven’t yet found one that’s easy to explain to the customer that makes sense."

4. How the sales stack up — and what to watch for

Welcome back to Climate Deals: Wheels! This week: the VW ID.4. 

If you've tried shaping mashed potatoes with the back of a spoon, you've got an idea of what this drive looks like. Then again: There's a reason everyone loves mashed potatoes. 

Tune in next time, when we'll be sharing our impression of the ultra-powerful Audi e-tron Sportback. 

September 10, 2022

1 big thing: The "everyday driver" EV