Volkswagen Dealers Welcome Delay Of “Unexpected” ID. 7 Electric Sedan

It turns out that pricing for the upcoming ID.7 was, in fact, an issue that led to its delay, according to VW dealers close to the situation. VW dealers have been asking for more electric models for years to compete against competitors like GM and Tesla, but Volkswagen has always appeared to be on its own schedule. The ID.7 and ID. Buzz were supposed to bolster the lineup substantially, but now it appears VW is rethinking its strategy in a changing market, and dealers seem appreciative.

Automotive News recently spoke with John Luciano, VW dealership owner and member of the VW National Dealer Advisory counsel, and Stephanie Brinley, Associate Director of AutoIntelligence at S&P Global Mobility about the delay, confusion surrounding which models dealers were expecting in the EV push, and why a delay allows dealers to breathe a sigh of relief.

Dealers Weren’t Expecting A Sedan

According to Luciano, years back, when the EV plan was laid out for dealers, they were initially under the impression they would receive something closer to the ID Space Vizzion Concept that would eventually turn into the ID. 7 Tourer wagon in Europe. That previewed a unique model with presence, something that set itself apart from the dying sedan market, and dealers were excited.

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Unfortunately, VW decided to go in a more conventional styling direction with the ID.7 and then announced it would have a starting price above $50,000 without being eligible for the $7,500 EV tax credit due to being built in Germany.

“I just don’t think an expensive electric sedan is in the cards for most Americans right now,” said Anthony Scala, co-owner of City Auto Group. He noted there didn’t appear to be any interest in such a model as there is for the ID. Buzz, and that a sedan that isn’t from one of the German luxury marques is “a non-starter” in today’s market. This lack of interest and concern appears to have influenced VW’s decision to delay the product.

A Delay Could Be Good Or Bad

Luciano believes the timing for the model to arrive by the end of the year wasn’t ideal, as the company would have had to offer substantial automaker incentives like Hyundai and Kia currently are to make the vehicle compelling at all. “We would love to have more models,” Luciano said. “We have always wanted to have more models. But we need models that will actually get out into the market and work. But that wasn’t going to work with no incentives.”

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VW hasn’t said how long the delay will last, but if it’s rethinking offers and features to make the sedan more compelling, the ID. 7 may end up being outdated by the time it arrives, especially if it’s delayed by one or more model years. “There’s a little bit of risk in delaying it a little bit further, especially since a lot of VW products have that natural gap between European launch and US launch,” Brinley said.

What once seemed cool and new may be middling if it arrives in a year or more, giving consumers time to consider competitors. Fortunately, the vehicle is ready to debut at any time, giving the company flexibility to time the market instead of leaving stock on dealer lots.

Source: Automotive News