German legacy automaker Volkswagen announced plans to kick off the production of its cheapest electric car offering, ID.1, in 2027.
VW brand leader Thomas Shafer asserted on Thursday that the move is apparently part of the company’s goal to deliver “affordable electric mobility for everyone.”
Volkswagen ID.1 to arrive soon
During the annual press conference on Thursday, Volkswagen brand Chief Executive Thomas Shafer confirmed that the company plans to start producing the $20,000 ID.1 electric car in 2027.
“The working title is ID.1 and the vehicle is planned for 2027.”
Thomas Shafer, Volkswagen brand Chief Executive
The VW brand CEO further disclosed that they have already initiated the work on ID 1.
“We’re already in the middle of it, we know what the car should look like.”
Thomas Shafer, Volkswagen brand Chief Executive
However, Volkswagen has yet to determine the ideal production location for the mass-market electric car. It is apparently “extremely economically challenging” due to battery costs, which will prompt the German automaker to mass-produce it to achieve the $20,000 price point.
Volkswagen is reportedly exploring four potential strategies for the ID. 1’s production, as per Automobilwoche. It is worth noting that VW is currently discussing the potential production of a compact mass-market electric car with France’s Renault.
Models in the pipeline
Apart from ID.1, the German automaker aims to roll out 11 new electric vehicles under the Volkswagen brand in the next three years.
The mix includes the highly awaited ID.2, due in 2026, with a base price of approximately €25,000 ($27,000), and the new EVs under the VW-XPeng partnership in China.
That said, VW Group CEO Oliver Blume declared on Wednesday that the company will decide on an entry-level model worth about €20,000 ($21,000) “this year.”
“We are working conceptually on a solution and are not ruling out partnerships in this area.”
Oliver Blume, VW Group CEO
Cose cooperation benefits
In hindsight, Volkswagen launched a 10 billion euro cost-cutting campaign at its namesake automotive brand. Nonetheless, it recently announced that closer cooperation resulted in an 80% growth in operating profit to 7.3 billion euros ($7.99 billion) for its core mass-market brands in 2023, primarily due to higher unit sales.
“Through close cooperation between our brands, we are working more efficiently, becoming more competitive and boosting our innovativeness for our customers worldwide.”
Thomas Shafer, Volkswagen brand Chief Executive
That said, the benefits of closer cooperation can potentially boost the company’s results in 2024 and ease the supply of raw materials and components.
