Wednesday, June 19, 2024
NewsVolkswagen Planning 20k Euro EV for Europe

Volkswagen Planning 20k Euro EV for Europe

Can Volkswagen build a new people's car?

  • Low-cost model needed to compete with Chinese automakers

  • VW said new model would be largely made in Europe

Volkswagen is once again planning an ultra-low-cost car to help it compete with foreign rivals. This time, it’s electric, and the goal is a car for Europe priced from 20,000 euros, or just under $30,000 Canadian, to arrive in 2027.

“It’s about entry-level electric mobility from Europe for Europe,” Volkswagen Chief Executive Oliver Blume said in a statement. “In doing so, we combine a clear commitment to Europe as an industrial location, a European industrial policy and ultimately act in the interests of European customers.”

The new model is called the Volkswagen ID.1, and it is directly aimed at Chinese rivals coming to Europe with cars that undercut European automakers by 30 percent or more. While those cars benefit from low-priced labour in their home country, VW said that it plans to make much of its cars in Europe. It said that would benefit consumers even more, thanks to lower emissions from transport.

Volkswagen brand head Thomas Schaefer said that the model would have high standards for technology, design, and quality, though he added that was more challenging due to costs for energy, raw materials, and labour. He used the opportunity to suggest more government intervention was needed, saying, “One thing is clear: electromobility from Europe for Europe can only succeed with political support and competitive framework conditions,” Schaefer said.


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