Volkswagen Group’s Chief Financial Officer is optimistic about the automaker’s ability to produce affordable electric vehicles (EVs) through the use of new, cost-effective battery materials and efficient manufacturing processes. The company’s recent announcement of a massive €180 billion ($200 billion) investment in March underscores its commitment to accelerating EV production and maintaining its position as a market leader.
With a significant portion of the investment, approximately 68%, allocated to electrification and digitalization efforts, Volkswagen intends to drive profits by reducing costs while simultaneously enabling the production of more affordable EV models. One of the key areas of focus for the company is battery technology. Volkswagen is collaborating on the development of unified battery cell technology, which has the potential to reduce costs by up to 50%.
See also: Volkswagen Unveils ID.2all EV Concept with 279 mile range and costing less than 25,000 euros
As a testament to its commitment, Volkswagen unveiled the ID 2all concept in March, showcasing its intentions to offer affordable EVs. The starting price of this model is projected to be under €25,000 ($27,000), making it accessible to a broader consumer base. Remarkably, the ID 2all will provide spaciousness equivalent to the VW Golf while being priced similarly to the Polo model.
Built on Volkswagen’s next-generation MEB entry platform, the ID 2all will incorporate highly efficient drive, battery, and charging technology. Although the complete specifications have yet to be released, preliminary details suggest that the EV will feature an electric motor with 166 kW (222 hp) and an estimated WLTP range of approximately 450 km (279 mi). Furthermore, it will offer the convenience of charging to 80% capacity in less than 20 minutes.
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Thomas Schafer, CEO of Volkswagen Passenger Cars, expressed his enthusiasm for the ID 2all, stating, “The ID 2all shows where we want to take the brand,” emphasizing the company’s commitment to delivering improved designs and cutting-edge technology at an affordable price point.
In a recent interview with Autocar, Volkswagen Group’s CFO, Arno Antlitz, expressed confidence in the automaker’s ability to deliver EVs at the projected price range. He cited the use of cheaper battery materials and enhanced manufacturing processes as key factors contributing to this achievement. Antlitz highlighted the introduction of the first in-house battery cells from Volkswagen’s Valencia plant and the expected scaling up of production as factors that would positively impact costs. Additionally, he noted that the decrease in prices for raw materials such as nickel and lithium would further contribute to cost reduction. Antlitz concluded by stating, “So from this perspective, we’re quite confident that we can achieve that €25,000 [£22,500] target and, at the same time, have a decent margin.”
While Antlitz’s remarks primarily centered on the ID 2all, the report suggests that these developments could potentially lead to the introduction of an even more affordable EV model known as the ID 1. Volkswagen’s CEO, Thomas Schafer, previously mentioned the utilization of the successful Polo vehicle concept for future models, implying that the ID 1 electric car could start at approximately €17,000 ($20,000). However, specific details about this model have yet to be disclosed.
See also: Volkswagen’s Upcoming ID.2all EV to Get Sporty Performance Version
Volkswagen celebrated a significant milestone last week, having produced its one millionth electric vehicle based on the MEB platform. This achievement comes after EVs achieved a record-breaking 7% share of total deliveries in the previous year. The company’s ongoing efforts to advance EV production and make them more accessible to consumers demonstrate its commitment to a sustainable and electrified future.
