Volkswagen resorts to 'Made in China' label in effort to slash production costs: 'Hard to believe'

For much of its history, consumers strongly associated Volkswagen with "German engineering," a concise marketing phrase that linked the brand with quality and precision manufacturing.

As the market rapidly evolves with electric vehicles in pole position, Germany's biggest automaker is stepping away from that aspect of its brand identity and embracing Chinese innovation, according to the Financial Times. 

On Nov. 25, Volkswagen's Chief Technology Officer, Thomas Ulbrich, spoke to reporters about the automaker's near-future plans. Ulbrich disclosed that VW "could, for the first time, develop cars outside Germany," the outlet reported.

China is the world's largest automotive market, accounting for almost 30% of global sales — and according to the International Energy Agency, it's the undisputed champion of EV adoption.

While the United States floundered on electrification, China's full-court press created fertile ground for EV innovation and fabrication, courting foreign automaker investments. 

Consequently, Volkswagen believes that developing and manufacturing new EVs in China can cut costs in half, due in large part to supply chain efficiencies and robust support infrastructure for the country's immense EV landscape, Reuters reported.

Earlier this year, Volkswagen's ID.7 Pro S model clocked a stunning 585 miles (941 kilometers) on a single charge during a test, indicating the legacy brand had no intention of being left behind as drivers worldwide continue to make the switch to EVs amid ever-rising energy costs. 

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Lower energy costs are only part of the consumer-side equation, but Volkswagen seemed confident that consolidating the bulk of its EV development and manufacturing in China's built-out and fast-moving landscape could bring down costs.

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Although VW doesn't plan to export its Chinese-made cars to Europe, its focus on China clearly hints at the potential for significantly reduced sticker prices on Volkswagen EVs.

Some consumers were skeptical, including a commenter on X.

Halved costs "would mean that significantly more than half of the car price is a labor cost, which is hard to believe," they remarked.

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