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Volkswagen Eyes Range-Extender Electric Cars to Bridge U.S.-Europe Gap

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  //automotive-transportation.news-articles.net/co .. nder-electric-cars-to-bridge-u-s-europe-gap.html
  Published in Automotive and Transportation on Thursday, December 11th 2025 at 3:34 GMT by Bloomberg L.P.

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Volkswagen Eyes Range‑Extender Electric Cars to Bridge the Gap Between the U.S. and Europe

In a move that could reshape the company’s electric‑vehicle (EV) strategy, Volkswagen Group is seriously exploring the production of range‑extender electric cars for both the U.S. and European markets. Bloomberg’s December 11, 2025 coverage outlines how the German automaker is weighing the pros and cons of a hybrid‑style powertrain that uses a small gasoline engine (or other small fuel source) to recharge the battery on the fly—an approach that could appeal to consumers still wary of long‑haul battery range and charging infrastructure.

Why a Range Extender?

Range‑extender vehicles (REVs) are a hybrid of sorts: a battery‑driven electric motor delivers the majority of the driving power, while a compact internal‑combustion engine (ICE) sits in the rear or in the trunk, acting as a generator to keep the battery topped off. The idea is to eliminate “range anxiety” while keeping emissions lower than conventional ICE cars. In the United States, where highway stretches are often miles long and charging stations are still sparse, REVs can offer a safety net that purely battery‑electric cars do not. In Europe, where charging stations are more widespread but urban congestion remains a problem, REVs could serve a different set of consumer needs, such as extended weekend trips or a “backup” option when battery levels dip low.

Volkswagen’s decision is driven by market research that shows a notable portion of both U.S. and European drivers still prioritize a guaranteed long‑range capability. “Range anxiety remains a hurdle to broader EV adoption,” said a VW spokesperson, citing the company’s own “consumer‑centric” approach. The company is looking to keep battery costs in check while still offering a compelling product line that can compete with rivals such as Ford’s upcoming all‑electric Mustang Mach-E or Tesla’s Model 3.

Technical Options and Production Footprint

According to Bloomberg’s investigation, VW is evaluating multiple technical paths:

1. Small Gasoline Engine – A low‑displacement ICE (around 1.0–1.2 L) that would generate power without being a primary propulsion source. This engine could be mounted in the rear, similar to the approach Ford took with the Mustang Mach-E's optional “PowerBoost” system.

2. Diesel or Natural‑Gas Options – For markets with stricter emissions limits, a small diesel or compressed natural‑gas (CNG) unit could provide the same function. VW’s research shows that a diesel range extender could achieve a fuel economy rating of roughly 15 mpg (6.7 L/100 km) while producing fewer tailpipe emissions than a larger gasoline engine.

3. Battery‑Assisted Electric Motor – A more radical option is a small, highly efficient electric motor that can keep the battery charged using regenerative braking and minimal grid power. This would create a “plug‑and‑charge” hybrid without the need for an ICE at all, but it would require larger battery packs and higher upfront costs.

In terms of production, VW is weighing a dual‑site strategy: a new production line in its Wolfsburg plant in Germany, and a dedicated facility in the U.S., likely near its Chattanooga, Tennessee assembly plant. “We can share the platform and many components across markets, but the range‑extender module will be localized to meet regional regulations and supply chains,” said a VW plant manager quoted in the article.

Cost, Emissions, and Market Timing

The Bloomberg piece highlighted a key challenge: balancing the cost of an additional power‑train module with the price sensitivity of consumers in both markets. VW’s internal cost‑model suggests that a range‑extender package could add $2,000–$3,000 to the base price of an ID.4‑style model. However, the company estimates that the lower battery size (e.g., a 40‑kWh pack versus a 60‑kWh pack) could save $5,000–$7,000 in battery cost, offsetting the extra engine costs.

On emissions, VW estimates a 30–40 % reduction in CO₂ per mile compared to a conventional gasoline car, and a roughly 10 % drop in tailpipe emissions relative to a standard EV that uses a larger battery pack. The company also noted that the range‑extender’s small ICE would be highly efficient, likely surpassing the average efficiency of current small engines.

Timing is another critical factor. Bloomberg reports that VW’s engineering teams aim to have a working prototype by mid‑2026, with a limited production run slated for 2028. “We want to be first to market on a proven REV platform, but not at the cost of compromising our long‑term battery strategy,” said a senior VW EV strategy officer.

Market Landscape and Competitive Context

The article draws parallels with the current EV landscape. In the U.S., Ford and GM are pushing their all‑electric line‑ups forward, but there is a small, but vocal, segment of buyers still demanding a range‑extender. Meanwhile, Tesla’s Model 3 and Model Y, which have no range‑extender, have set a high bar for battery performance, but their limited charging infrastructure continues to hamper adoption in certain regions. In Europe, the German automaker's own ID.4 and ID.5 models have found success, but the ID.4 has also faced criticism for its short range in extreme winter conditions. A REV version could address those concerns.

Public and Environmental Reception

Volkswagen’s internal analysis indicates that the public reaction will largely depend on marketing messaging. “We will emphasize the eco‑friendly nature of the small engine, the high efficiency, and the fact that it eliminates the need for large battery packs,” said a VW public‑relations head. The company is also preparing to lobby for a “low‑emission” category that could give its REV models a tax advantage in both the U.S. and EU markets.

Critics, however, warn that range‑extenders are a “dead‑end” strategy that may undermine the push towards full battery electrification. Environmental NGOs, such as the European Cyclists’ Federation, have urged VW to focus on battery‑only models. “The market can’t afford a double‑drive system that merely delays the inevitable shift to fully electric,” said a spokesperson from the organization.

The Bottom Line

Volkswagen’s exploration of range‑extender electric cars reflects a broader industry trend of balancing consumer preferences with regulatory pressures and technological constraints. The company’s approach—leveraging a small, efficient engine to supplement a smaller battery pack—could offer a pragmatic middle ground. Whether VW will bring a REV to market by 2028, and how it will affect the company’s broader EV trajectory, remains to be seen. Bloomberg’s coverage suggests that the automaker is ready to make a calculated leap, and the outcome will shape the EV debate in both the U.S. and Europe for years to come.