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VW Speeds Up Work on Small Electric Car, Culls Combustion Models

  • New EV to start at less than 30,000 euros in mass-market push
  • Company steps up cost-cutting to save cash for electric foray
New Volkswagen ID.4 Electric Car Takes Aim at SUV Buyers
Photographer: Krisztian Bocsi/Bloomberg

Volkswagen AG is accelerating development of a compact electric car that will cost less than 30,000 euros ($35,800) as tightening emissions rules and generous subsidies bolster sales of battery-powered vehicles, according to people familiar with the matter.

The VW-branded car may be introduced as early as 2023, flanking the ID.5 crossover to be sold from next year as well as an electric iteration of the iconic hippie-era minibus slated for 2022, said the people, who asked not to be identified discussing internal plans.