Automotive News has reported that Volkswagen will “breakthrough an industry barrier” by making its utilized all-electric ID vehicles available for lease. Volkswagen intends to incorporate North America in its forthcoming global strategy, which is good news for those people in the United States.
According to Volkswagen executives who recently spoke with Automotive News, this is a method for the company to maintain influence over its precious battery packs. This month, the announcement directly from Volkswagen Group CEO Herbert Diess during a panel discussion at the Munich motor show and was widely reported. Furthermore, he stated that re-releasing the vehicles will enable the corporation to put their battery packs to new applications, such as rapid chargers and home power alternatives. Diess revealed the following information with Automotive News: “In Europe, we are attempting to obtain a second, third, and even fourth lease in order to keep the automobile in our possession. Battery life, we believe, is approximately 1,000 charging cycles and approximately 350,000 kilometers [approximately 215,000 miles], or something along those lines. Consequently, the battery will most likely outlive the automobile, and we desire to get our hands on it as soon as possible. We don’t intend just to throw away the batteries.”
Because electric vehicle batteries are expected to endure for several years, the car batteries in older used electric vehicles may still be worth a significant amount of money even after the vehicle itself has devalued significantly. Furthermore, Diess believes that the value of an electric vehicle’s battery pack might help preserve the vehicle’s residual value high sufficient that re-leasing will become a viable choice for car shoppers in the future.
He continued by saying that we have actually seen electric vehicles keep their value better than gas-powered vehicles. Even in the worst-case scenario, unless the car is destroyed, there is still a very precious battery pack within that can be repurposed, reused, and/or recycled, regardless of the vehicle’s condition.
VW Group of America CEO Scott Keogh went on to say that the brand is already hard at work putting this plan into action. He highlighted those residual values might allow Volkswagen EVs to remain on the road in the custody of numerous owners for up to 8 years. It would then be necessary to return the vehicles to Volkswagen so that the batteries could be removed and recycled. At first look, this appears to be a win for Volkswagen as well as for electric vehicle buyers in general.