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VW North America CEO issues warning about price gouging for upcoming ID. Buzz

The Volkswagen ID. Buzz marks the brand's re-entry into the North-American minivan market after a 20-year hiatus. (Image source: Volkswagen)
The Volkswagen ID. Buzz marks the brand's re-entry into the North-American minivan market after a 20-year hiatus. (Image source: Volkswagen)
Volkswagen North America CEO Pablo Di Si has issued a shot across the bow, warning against price gouging and excessive dealership markups on its upcoming US-bound ID. Buzz electric minivan set to launch in 2024. The CEO emphasised that the vehicle is an important launch for VW, and that the company cannot afford to drop the ball in this case.

Volkswagen recently announced that a long-wheelbase version of the retro-inspired ID. Buzz minibus would make its way to US shores in the very near future. Shortly after the announcement, in an interview with Automotive News, VW America's CEO Pablo Di Si had some choice words for dealers looking to price gouge customers on the ID. Buzz.

Di Si recognises the state of the EV market at the moment, acknowledging that there needs to be a strategy in place to deal with overwhelming pre-orders and demand, but he is determined to not make VW customers suffer as a result of the increased demand.

We cannot make a mistake [with] this vehicle. With respect to the customer, let's discuss it. We have a good relationship with the [dealer] network. We cannot have markups.

The ID. Buzz notably does not qualify for US tax incentives, which means unchecked dealer markups could push the price into unreasonable territory, costing Volkswagen a lot of sales for its highly-anticipated electric minivan. Di Si recognises that time is running out to implement a system that deals with high demand in a way that's fair to both consumers and dealers.

We need to find a fair way ... for the consumer and the dealer — there's no overpricing, that the system doesn't crash. We have, I would say, another three to five months to figure it out. We don't have the solution yet.

Rivals like Tesla and Ford are leaning more and more on online sales, clamping down on dealer markups and fees. These strategies could be received as hostile towards dealers, and Volkswagen seems to want to maintain a positive relationship with its dealership network rather than cutting it out entirely.

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> Expert Reviews and News on Laptops, Smartphones and Tech Innovations > News > News Archive > Newsarchive 2023 06 > VW North America CEO issues warning about price gouging for upcoming ID. Buzz
Julian van der Merwe, 2023-06- 5 (Update: 2023-06- 5)