According to media reports, Volkswagen has presented a new low-cost electric vehicle to its employees, with plans to launch it in Europe in 2027 at an estimated price of around €20,000.
The new small EV will serve as the entry-level model of Volkswagen's ID series and is likely to be named the ID.1. Its main competitors will include low-cost small EVs from Chinese and Korean brands, as well as models from European rivals such as Renault.
On February 5, Volkswagen Brand CEO Thomas Schaefer addressed employees at the company's headquarters in Wolfsburg, stating that the new model would be an "affordable, high-quality, and profitable car-a Volkswagen EV made in Europe for European consumers." Schaefer also revealed that the new model will be officially unveiled in early March.
The first vehicle in Volkswagen's small EV lineup will be the production version of the ID.2 concept, a compact car priced at €25,000, expected to launch in 2026. It will be manufactured in Spain. However, Volkswagen has not disclosed whether the ID.1 will use the same MEB-based architecture as the ID.2 or where it will be produced.
The presentation of the ID.1 to employees at the Wolfsburg plant serves as a message from Volkswagen's management, reassuring workers of the company's commitment to producing vehicles in Wolfsburg despite months of cost-cutting negotiations.
Volkswagen concluded its negotiations with labor unions in December last year, reaching an agreement on a €15 billion cost-saving plan. This includes cutting 35,000 jobs in Germany by 2030 and reducing production capacity by 700,000 units.
In a press release issued on February 5, Volkswagen announced that the Wolfsburg plant will become its primary production base for compact electric vehicles. The next-generation electric Golf will also be built there, utilizing Volkswagen's new SSP (Scalable Systems Platform). Additionally, the company plans to increase production of the electric T-Roc.
As part of the agreement with labor unions, Volkswagen will relocate production of the gasoline-powered Golf from Wolfsburg to Mexico.
Volkswagen's "core brand team" is currently developing multiple small EVs, with the ID.1 being one of them. This team includes several brands under the Volkswagen Group, such as Volkswagen, Škoda, and SEAT.
Volkswagen initially considered partnering with Renault to develop this vehicle but ultimately decided to proceed independently. The company believes that achieving a high level of localization in Europe will help reduce costs.
