VW sent out an email to ID.4 reservation holders in the US explaining a series of changes that will be made for all ID.4 vehicles assembled after January 4, including a price hike, battery supplier changes, and an end to the reservation system.
Most notably in the changes is the fact that the $1,500 MSRP increase comes to all 2023 ID.4 SUVs assembled on January 4 or later, including those which have previously been reserved currently. VW adds that the actual price will be set by dealerships and that their price is merely a recommendation. Under the new pricing scheme, the basic ID.4 Standard starts at $38,995, while the price tops out with $55,245 for the ID.4 AWD Pro S Plus. The ID.4’s software was also updated at the beginning of December.
An issue with dealerships setting their own prices is also that currently, availability of the electric SUVs is quite limited, so even finding a vehicle at MSRP is not likely. Volkswagen stated that the company expects availability to be up soon, however. With the launch of production at the Tennessee plant, VW plans to stop taking new ID.4 reservations next year. The last day to place a reservation will be January 4, after which VW thinks ID.4s will be readily available in their dealerships.
Volkswagen had already raised the price for the 2023 ID.4 back in August, making this the second price hike this year. As production had only started in July, it appears that the German automobile manufacturer ran into some unforeseen production costs. Just a few days ago, VW had also announced plans to change management in their purchasing department. This strategic reorientation also extends to new vehicles for different markets, as the German company has decided to focus more on SUVs in North America, for example. VW has also updated their production processes to qualify for the Inflation Reduction Act, which requires much of the vehicle to be assembled locally.
In addition to the new production lines, a new battery supplier was brought on board with SK Innovation, whose batteries can charge with a 170kW peak instead of 135kW, which is the maximum for the LG Chem supplied batteries. VW states that an LG-supplied 82kWh battery can charge from 10-80% in about 36 minutes, while the SK-supplied batteries will be able to do the same charge in about 30 minutes, if you can find a fast charger capable of the difference.