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How U.S. Manufacture Could Keep the 2023 Volkswagen ID.4 Under $40,000

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How U.S. Manufacture Could Keep the 2023 Volkswagen ID.4 Under $40,000

Key Points:
  • Volkswagen’s designers created three trim levels for the 2023 ID.4: EV crossover, Standard, Pro, and AWD Pro.
  • The Volkswagen crossover offers excellent steering, a smooth, comfortable ride, and plentiful agility for city and highway driving alike.
  • As noted, Volkswagen intends to build the ID.4 inside the United States. This satisfies one of the key eligibility requirements for the new Clean Vehicle Credit.

Volkswagen appears to be retracing its roots as an affordable “People’s Car” with its American-made ID.4 Standard crossover plans. The Teutonic automaker’s latest offering could challenge the two frontrunners, Nissan Leaf and the Chevy Bolt, in the compact, affordable EV space. Volkswagen plans to build it in America to keep MSRP below $40,000.

US manufacturing gives the Volkswagen ID.4 another bonus – eligibility for the Clean Vehicle Credit. The old EV tax credit is out, and the Inflation Reduction Act launched a new approach. The ID.4’s low price and its US production should win a $7,500 tax break for the small electric crossover. Those looking for a small, cheap Volkswagen EV will probably have an income below the upper limit set by the Act.

Car reviewers who’ve got behind the wheels of the ID.4 say its range is similar to Bolt’s. However, the EV os more spacious and comfortable than its two main competitors. Cheap and roomy, the ID.4 may make up for its somewhat higher sticker price with added quality and versatility.

Volkswagen ID.4 Specs and Performance: What We Know

Volkswagen ID4 GTX at a parking lot
All three trims of the 2023 ID4 will feature a 5-watt USB-C fast device charging

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Volkswagen’s designers created three trim levels for the 2023 ID.4: EV crossover, Standard, Pro, and AWD Pro. The most important for Volkswagen’s USA strategy is the brand-new Standard trim, built for maximum thrift. Despite its $37,495 price tag, the Standard packs in a number of features and still offers a range of 200+ miles. Higher trim levels range up $50,195.

Riding on 19-inch wheels, or 20-inch for higher trims, the ID.4 includes LED headlights and taillights. The ID.4’s designers built it with Volkswagen IQ.DRIVE driver assistance technology even for the Standard trim. The system offers active cruise control, collision warnings, blind spot monitoring, and lane keeping assistance among other features. IQ.DRIVE also provides a rear traffic alert warning the driver of rearward obstacles when backing out of the driveway or a parking space.

Volkswagen closed reservations for the ID.4 Standard as of mid-October 2022.

ID.4 Range, Charging, and Performance

The base Volkswagen ID.4’s range falls between the Chevrolet Bolt and the Nissan Leaf. The Standard model and other lower trims feature a 62-kWh battery capable with potential range of 208 miles. This jumps to 275 miles of range for higher trim levels equipped with an 82-kWh battery instead. For comparison, the Nissan Leaf can travel 149 miles to 212 miles on a single charge depending on battery option. The Chevy Bolt gets 259 miles maximum range per charge.

Recharging architecture also depends on trim level, offering decent but not lightning-fast charging on Level 3 DC fast chargers. The standard trim has a maximum charging capacity of 140 kW, meaning an approximate 40-minute time to 80%. Pro trims charge at 170 kW, slightly reducing 80% charge time to 30 minutes. Level 2 charging on home 240-volt current requires 6 hours, 30 minutes according to Green Car Reports.

The ID.4’s electric motors, like all such motors, generate instant torque that a similar gasoline model couldn’t rival. The lower trims feature all-wheel drive (AWD) generating 201 horsepower and 229 ft-lbs of torque, Car and Driver reports. These are enough to give it a 0-60 mph time of 7.6 seconds. A dual-motor all-wheel drive (AWD) setup powers higher trim levels, cutting 0-60 time to 5.4 seconds. The AWD models develop 295 horsepower and 339 ft-lbs of torque. All models are said to have a towing capacity of 1,700 lbs.

While the ID.4 features regenerative braking, reviewers report it isn’t enough for one-pedal driving. However, this Volkswagen crossover offers excellent steering, a smooth, comfortable ride, and plentiful agility for city and highway driving alike.

ID.4 Interior

Interior of the Volkswagen ID4

VW ID4

typically features a 10-inch infotainment screen with GPS mapping and navigation.

The Volkswagen ID.4 seats five people and boasts a roomy interior. The design continues the ID.4’s focus on comfort and convenience, including good cargo space for a small crossover SUV. Both front and rear seats give people plenty of legroom and headroom, unlike the cramped dimensions of some other small EVs. Owners benefit from 30.3 cubic feet of cargo volume behind the rear seats. The seats can also fold down to boost this to 64.2 cubic feet.

Engineers made even the lowest level trim, the Standard, with a pleasantly upscale-feeling interior. The seats are cloth and vinyl leatherette, and interior materials are chosen to avoid a cheap feeling. Options for the Standard model (and others) include heated front seats, massaging lumbar support, and a glass roof.

The 12-inch control screen and infotainment center, however, has a somewhat clunky interface. Moving through multiple menus is often necessary for a single rather straightforward task. Users can find climate controls separate from, and below, the touchscreen. Apple CarPlay and Android Auto are standard in the EV and offer wireless connectivity. USB ports and charging ports for electronic devices are also present. charging and connectivity much handier.

Safety features begin with the semi-autonomous driver assistance offered by IQ.DRIVE. Passengers are also kept safer with airbags, side impact beams, and a back-up camera.

Volkswagen ID.4 Crossover Tax Credits

Qualifying for a federal tax credit under the new Inflation Reduction Act rules could also be an important ID.4 selling point. Shaving $7,500 off MSRP brings the Volkswagen EV’s base price closer to $30,000 than $40,000. While still more expensive than either the Bolt or the Leaf, the ID.4 will be among the most affordable EV models available in the USA.

As noted, Volkswagen intends to build the ID.4 inside the United States. This satisfies one of the key eligibility requirements for the new Clean Vehicle Credit. The Inflation Reduction Act specifies the credit is available only for EVs whose final assembly occurs in North America. Volkswagen’s plans have this covered, while the under-$40,000 base price is safely below the $55,000 cutoff for passenger cars. There’s even room for an options package or premium upgrade without forfeiting the tax credit.

The Volkswagen ID.4’s sticker price when brand new will likely qualify it for the Act’s used vehicle tax credit, too. This $4,000 credit is available for used EV sales meeting a fairly strict set of guidelines. These include a used vehicle price of $25,000 or under, plus the USA assembly requirement. While used EVs are currently commanding premium prices, the ID.4 is only around $38,000 new. In a few years, used prices will likely be under $25,000 in any case. The ID.4 will probably be one of a small handful of EVs offering a used-car buyer the $4,000 tax credit. Currently, only about 8 used EV models meet the guidelines enough to typically qualify; the ID.4 will be the ninth.

The ID.4’s Battery is Also Clean Vehicle Credit Eligible

To ensure the Volkswagen ID.4 eligible for the new Clean Vehicle Credit, the company will source its batteries from a US maker. The Inflation Reduction Act requires an EV’s battery to meet three guidelines for the vehicle to remain eligible:

  • 40% of its “critical minerals” must come from the USA or a country with a US free trade pact. The amount increases 10% yearly to a maximum 80% in 2027.
  • 50% of battery manufacture and assembly must take place in the USA. This increases to 60% in 2024 and 2025, then 10% yearly up to 100% in 2029.
  • Battery materials can’t come from a “foreign entity of concern.”

Volkswagen appears to have this part of the ID.4’s continuing tax credit eligibility covered. SK On, a subsidiary of SK Innovation, will build the EV’s batteries in its multi-billion-dollar Georgia factories. The factories should soon ramp up to nearly 10 gWh of batteries built yearly according to a company press release. Lake Resources, an Australian company, inked a deal on October 12th, 2022, to supply SK On with lithium for its batteries.

Lake Resources will provide 15,000 tons of lithium to SK annually for two years, then 25,000 tons yearly going forward. While most of this material will go to batteries for other EVs, Volkwagen should have plenty for the ID.4.

How Volkswagen Offers an Affordable ID.4

Volkswagen says it’s able to offer the 2023 ID.4 for $37,495 because production will happen in its Tennessee plant. Located in Chattanooga, the factory just started operation in late 2022. Even this price is up almost $2,500 from the originally planned $35,000, driven by material costs. However, building and assembling the ID.4 locally saves on numerous add-on costs that could otherwise drive its price up. This makes it one of the limited EV models to claim the full $7,500 Clean Vehicle Credit from the jump.

The Chattanooga assembly line workers are currently cranking out 25 ID.4s daily. Volkswagen expects this to rise to 45 EVs per day once production is in full swing. Volkswagen appears to have a potentially winning strategy building the ID.4 in America. Buyers also win thanks to the crossover’s affordability and quality. Clean Vehicle Credit eligibility and many features that could be expected on a larger, more expensive EV round out the ID.4’s strong benefits for thrifty EV drivers.

Volkswagen has sold over 190,000 ID.4s in earlier model years worldwide. Its latest plans appear likely to successfully bring that electrified affordability to the United States, too. Returning to the roots echoed in its very name, the company is, in its own words, building an “electric car for millions, not just for millionaires.”

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Frequently Asked Questions

What’s new for the 2023 Volkswagen ID.4?

The $37,495 budget-friendly Standard trim is new for the 2023 model year. The company is manufacturing this EV directly in the USA to cut costs, rather than importing it from Germany as with previous ID.4 model years.

What overall warranty covers the Volkswagen ID.4?

The EV as a whole is covered by a limited 4 year or 50,000 mile warranty.

What are the additional ID.4 warranties?

Volkswagen warrants the powertrain for 4 years or 50,000 miles, just like the vehicle itself. The battery is warranted for double this time and distance at 8 years or 100,000 miles. Corrosion is covered for 7 years or 100,000 miles, and owners get 3 years or 36,000 miles of roadside assistance.

What is the ID.4’s top speed?

Top speed is set at 100 mph (limited by an internal governor). The ID.4 can reach this speed from a standstill in 26 seconds, according to testing.

What is the 2023 Volkswagen ID.4 Standard’s release date?

The ID.4 Standard should be available in late 2022.

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