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Volkswagen have planned to unveil the VW I.D cars range, fully-electric vehicles with autonomous capabilities by 2025. UBS’s research was based on the deconstruction of the Chevy Bolt. The
Bolt is considered to be the “world’s first mass-market EV, with a range of more than 20 miles.” This car was deconstructed by UBS, with each part and pieces analysed. They suggested that
the $37,000 car could be $4,600 cheaper to produce. “We estimate that GM (which produces the Bolt) loses $7,400 in earnings before interest, and tax on every Bolt sold today, mainly due to
a lack of scale.” It was also suggested that Tesla’s Model 3 could cost Elon Musk’s company $2,800 per car. “Once total cost of ownership parity is reached, mass-brand EVs should also turn
profitable,” UBS said. “Our detailed analysis of moving and wearing parts has shown that the highly lucrative spare parts business should shrink by ~60pc in the end-game of a 100pc EV world,
which is decades away,” UBS said. Ian Fletcher, principal automotive analyst at IHS Markit, added: “We are not going to see the death of diesel or petrol anytime soon but manufacturers are
weighing up the investment cost of traditional engines against electric, as well as the levies they face over the emissions of their fleets.”