Volkswagen announced plans to develop low-cost electric vehicles aimed at competing with Chinese rivals in the European market. The move comes after talks with Renault to collaborate on the project fell through earlier this month.
The new project, named ID.1, aims to produce electric vehicles priced around 20,000 euros ($21,746) for European customers. Volkswagen CEO Oliver Blume stated, “It’s about entry-level electric mobility from Europe for Europe,” emphasizing the company’s commitment to the region.
See also:Ā Volkswagen Ends Talks with Renault on Electric Twingo Development
To ensure competitiveness, Volkswagen plans to localize production in Europe, reducing emissions by cutting transport routes for components. The company also warned that the European automotive industry has a limited timeābetween two and three yearsāto prepare for the competitive threat posed by Chinese manufacturers.
Volkswagen brand boss Thomas Schaefer highlighted the challenges of balancing affordability with technology, design, and quality standards. He emphasized the need for political support and competitive framework conditions for the success of European electric vehicles, urging a collaborative effort from all stakeholders.
See also:Ā Volkswagen Shifts Focus to Plug-In Hybrids, Rethinking Electric Vehicle Strategy
Volkswagen is currently implementing 10 billion euros worth of savings and cost-cutting measures at its namesake brand by 2026 to bolster its competitive position in the evolving automotive market.
