Volkswagen brand boss, Thomas Schäfer, recently spoke with Auto News Europe about the forthcoming ID.2all hatchback from the car manufacturer, which will have a starting price of less than €25,000 ($27,464). Despite its affordable price point, Schäfer insists that the ID.2all will be profitable for VW.
According to Schäfer, VW will not have margins below 6% and intends to make money. He stated, “With the scale we have with four vehicles from three brands [on the same MEB Entry platform] – two from VW, one from Cupra, and one from Skoda – I guarantee we can. We are not a charity.” The VW boss believes that the ID.2all hatchback, along with its SUV variant, as well as the Skoda and Cupra versions, will all be profitable for the automaker.
It is important to note that it will only be the ID.2all hatchback that starts at under €25,000. The SUV variant that it spawns from VW, as well as the Skoda and Cupra versions, will each be priced from over €25,000. Schäfer did not provide pricing details for all of these models, but he did note that the ID.2all hatchback and the Cupra model will be built at VW’s plant in Martorell, Spain. Meanwhile, the ID.2all-based SUV and Skoda model will be manufactured in Pamplona, Spain.
The new Unified cells developed by VW’s new PowerCo subsidiary will be essential in making the sub-€25,000 model a reality. Schäfer emphasized that without these batteries, it would be impossible for VW to build such a model. “The new Unified cell from our PowerCo subsidiary will be scaled across all models, factory by factory. That will give us a real cost advantage. The Unified prismatic cell gives us enough density, and we think it’s going to be the industry standard going forward,” Schäfer explained.
Despite the challenges, Schäfer is confident that VW can offer an affordable EV without compromising on safety and range. “To get a car below 25,000 euros that has no compromises with safety and range is literally impossible at the moment,” he said. However, VW is developing another affordable EV, expected to arrive by 2026-27, with a price tag of sub-€20,000 ($21,971). The automaker has not yet decided if it will partner with another automaker or go it alone to bring this EV to life.
