Shoppers are reminded - Volkswagen plans to manufacture €20,000 electric vehicles at their own facility, starting in 2027.
Volkswagen is gearing up to create its own budget electric car, aiming for a release in 2027 without any help from other carmakers. The car, which is estimated to cost around €20,000, will be manufactured in Europe. A global debut is scheduled for that same year following a meeting at their headquarters in Wolfsburg. However, a collaboration with Renault didn't pan out.
The production of this car reflects a strong commitment to European manufacturing, as stated by Group CEO Oliver Blume, "It's about electric entry-level mobility from Europe for Europe." So far, Volkswagen hasn't specified a particular production site.
The carmakers have their sights set on this model as a means of completing their electric lineup and entering the entry-level electric vehicle segment, said CEO of the VW brand, Thomas Schäfer, "We need to have attractive vehicles, especially in the entry-level segment, for electromobility to take off in the mass market."
Apart from the ID.1, which Schäfer mentioned in March, a Škoda version is also in the pipeline, according to Business Insider. The cheapest VW electric car, the ID.3, currently starts at around €40,000. The ID.2all, scheduled for 2026, will cost about €25,000. A previously planned ID.Up, set at under €30,000, was scrapped by VW last year. This price gap will now be closed by the ID.1. Volkswagen intends to only sell electric vehicles in Europe starting in 2033.
The development of the ID.1 is well underway, confirmed Schäfer in March. "We're in the middle of it, we know how the car should look," he added. VW aims to set standards in the entry-level electric vehicle segment despite its low price. Schäfer acknowledged this would be a challenging task, further complicated by rising energy, material, and raw material costs. The company successfully achieves a price of €20,000 primarily through high sales volumes.
VW also considered a partnership with other manufacturers to boost volumes. Initial discussions with Renault regarding a shared small car platform for electric VWs and the Renault Twingo failed, confirmed Renault CEO Luca de Meo to Reuters. De Meo added that the talks fell through. Volkswagen hasn't officially commented on the talks with Renault. In the spring, Blume mentioned four scenarios for producing the small car. He also didn't reject the possibility of a collaboration with another carmaker but didn't name any names.
The precise location within Europe where the ID.1 will be assembled is unknown. Producing the car in Germany seems unlikely. Volkswagen has already allocated the production of the ID.2all to its subsidiary Seat in Spain due to cost reasons. The ID.2all, along with similar models from Cupra and Škoda, will enter the market in 2025.
Experts identify high prices for electric cars as a significant barrier to the expansion of electromobility, emphasized German Chancellor Scholz at the Munich IAA Mobility fair in September. He pressured manufacturers to include more affordable options in their lineup. Scholz underlined the role manufacturers play in making electric vehicles accessible for the average citizen.
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- Volkswagen will manufacture their budget electric car, estimated to cost €20,000, in Europe, as announced by Group CEO Oliver Blume.
- The ID.1, a key component of Volkswagen's electric lineup, is currently under development, with Thomas Schäfer, the CEO of the VW brand, aiming for a mass market presence.
- A partnership between Volkswagen and Renault for a shared electric car platform didn't materialize, as confirmed by Renault CEO Luca de Meo.
- The entry-level electric vehicle segment in Europe is seeing significant competition, with companies like Škoda planning to introduce their own models.
- The introduction of affordable electric vehicles is crucial, as highlighted by German Chancellor Scholz at the Munich IAA Mobility fair, to make electromobility more accessible to consumers.
- Apart from the ID.1, Volkswagen is also working on the ID.2all, set to be produced by their subsidiary Seat in Spain from 2025, to cater to the demand for affordable electric vehicles.
- In response to high prices being a barrier to electromobility expansion, Volkswagen aims to maintain a competitive edge by achieving a price of €20,000 for the ID.1 through high sales volumes.
- This commitment to electromobility and budget electric vehicles is not limited to Volkswagen; other car manufacturers like Škoda are also actively participating in this growing market in Europe.
Source: www.stern.de
