The boss of the VW brand insists that the car manufacturer’s forthcoming ID.2all hatchback will be profitable, despite having a starting price of less than €25,000 ($27,464).
While recently speaking with Auto News Europe, VW brand boss Thomas Schäfer stated that the carmaker will make money from the ID.2all hatchback. He added that the ID2.all will spawn two models from the VW brand, one from Cupra, and one from Skoda.
“We cannot have margins below 6 percent,” Schäfer said. “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. We intend to make money.”
Read: The VW ID.2 Electric Hatch Will Get A Hotter GTI Or GTX Variant Too
Importantly, 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. While Schäfer didn’t specify pricing details for all of these models, he noted that ID2all hatchback and the Cupra model will be built at its plant in Martorell, Spain while the ID.2all-based SUV and Skoda model will be manufactured in Pamplona, Spain.
Key to making the sub-€25,000 model a reality will be the new Unified cells developed by the carmaker’s new PowerCo subsidiary. Schäfer added it would be impossible for VW to build such a model without these batteries.
“The new Unified cell from our PowerCo subsidiary will be scaled across all models, factory by factory,” he said. “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. To get a car below 25,000 euros that has no compromises with safety and range is literally impossible at the moment.”
The VW ID.2all hatchback isn’t the only affordable EV being developed by the carmaker. Arriving by 2026-27 at the latest will be a sub-€20,000 ($21,971) EV. VW has still yet to decide if it will partner with another automaker to bring it to life or if it will go it alone.
