Volkswagen has selected its Autoeuropa plant in Palmela, Portugal, as the production site for its upcoming ID. EVERY1, the first model developed using its joint electric architecture with U.S. EV maker Rivian, Portuguese automotive news outlet Razão Automóvel reported on Monday.
The ID. EVERY1, unveiled last week, is positioned as a €20,000 ($21,000) entry-level EV for the European market and is set to launch in 2027.
See also: Volkswagen Unveils ID. Every1, a €20,000 EV Targeting Mass Market Adoption
Volkswagen has yet to confirm the production location officially, but Greta Höhne, spokesperson for the ID.1 and ID.2 projects, stated that the company will make an announcement later Monday. CEO Thomas Schäfer is expected to provide further details at an event ahead of Volkswagen’s annual results presentation.
Volkswagen plans to roll out nine new electric models by 2027, including the ID.2All later this year, refreshed versions of the ID.3, ID.4, and ID.5, as well as an SUV and a GTI variant of the ID.2All.
See also: Volkswagen’s ID. EVERY1 to Be First EV Featuring Rivian’s Software and Architecture
However, as the company expands its EV lineup, it is also pushing back its profitability target, now aiming for a 6.5% profit margin within three to four years instead of the original 2026 goal. The core passenger car brand currently operates at around a 2% margin.
In the third quarter of 2024, Volkswagen reported an operating profit of €2.86 billion ($2.95 billion), with sales revenue down 0.5% year-over-year to approximately €78.5 billion. The automaker has also announced plans to cut 35,000 jobs through voluntary departures and reduce capacity at its German plants as part of a €15 billion annual savings plan.
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Meanwhile, Volkswagen is exploring an expanded partnership with Rivian, just two months after officially establishing a joint venture with the California-based EV startup. Volkswagen, which faced setbacks with its Cariad software division, will integrate Rivian’s software and technology while Rivian continues to prepare for the launch of its R2 and R3 models.