Volkswagen is making its first all-electric SUV available to American customers with deliveries to U.S. dealerships beginning this month. 

"Obviously there's a movement at hand, and Volkswagen likes to lead and likes to be part of the movement," Volkswagen Group of America CEO Scott Keogh told Cheddar. "We think electric vehicles are ready to explode. It's already happening worldwide, and we want to be part of the lead."

The ID.4 model is currently manufactured in Germany and China but will begin U.S. production in 2022. Volkswagen's plant in Chattanooga, Tennessee, will produce the electric vehicle locally. 

Keogh said the ID.4 was competitive at $39,995 but noted that the federal tax credit for electric vehicles helped put the model right in the "sweet spot" for the U.S. car market. 

"Make no mistake, I think it is important," he said of the credit. "This is technology we want to have adopted. It's technology we want embraced by all American consumers, and certainly, the $7,500 tax credit helps build and lengthen that runway to get this off the ground." 

The German automaker's stock price has soared in recent weeks, even as industry leader Tesla's sky-high valuation has shrunk. 

Keogh attributed this to "old auto" showing its strength in the new electric vehicle market. 

"In any competitive industry, there never is just a number one," he said. "There's always a two, and there's always a three, and frankly Volkswagen has now joined the game."  

He also said the market is responding to the company's commitment to the Paris Climate Agreement, and its plan to reach net-zero emissions by 2050. 

"The market buys the future. The market believes the future, and right now they're believing us."

As for how the ID.4 stacks up to Tesla's Model Y, another fully electric SUV, Keogh touted Volkswagen's sales infrastructure and market penetration.

"We have 650 dealers across the country," he said. "They've been trained. We have EV specialists. They're ready to sell the car. They're ready to service the car. They're ready to embrace the car."

This footprint, he added, gives the company an edge in capturing new customers in the electric vehicle market, which is more important than clawing customers away from Tesla. 

"We need internal combustion engine owners to look at this car," he said.

Share:
More In Business
Youth Sports Coaching App MOJO Partners With MLB to Make Sports Fun for Kids
Youth sports coaching service MOJO has partnered with Major League Baseball, named the "trusted grassroots coaching app" of the MLB. The app provides content for parents and coaches to help young players grow their skills. Ben Sherwood, founder & CEO of MOJO joined Cheddar News to talk about how his app works to improve coaching to keep players interested. "The number one reason that kids drop out of sports and all of the surveys is that sports aren't fun, and one of the big reasons that sports aren't fun is that the coach doesn't know what she or he is doing," he said. "We think there's a great coach in everyone, and we just have to have the right resources and tools and inspiration."
Big Tech Firms Like Amazon, Google Accused of Exaggerating Climate Actions
Big tech companies such as Amazon and Google are garnering criticism for failing at their proposed climate pledges, most of which rely on carbon offsets — a potential loophole where companies pay others to address their omissions. Gilles Dufrasne, policy officer at Carbon Market Watch, joined Cheddar News to explain the organization's negative evaluation. "The objective here is not to bash companies and say everybody is doing the wrong thing," he said. "The objective is to also provide lessons, and there are some companies that are doing the right thing."
What Jeff Zucker's Resignation Means For CNN
Jeff Zucker has resigned as CNN's president, writing in a memo he failed to disclose a romantic relationship with a colleague. Zucker admitted to the relationship, which he described as consensual, during the investigation into former CNN anchor Chris Cuomo's behavior. Seth Schachner, managing director of StratAmericas, joined Cheddar to discuss where does this abrupt resignation leaves the network.
Garrett Nelson
Analyst takes a closer look at Ford's EV ambitions after earnings disappointment.
Load More