- VW admits it’ll be hard to achieve positive margins with the ID.1.
- The ID.1 will be the first brand’s model to use Rivian’s electric architecture.
- Underpinning the new model will be VW’s MEB front-wheel drive platform.
It’s only been a week since VW previewed its new entry-level EV with the ID. Every 1 concept, and already, the brand has confirmed where the production model will be built. It won’t be brought to life in Germany, but rather at VW’s Autoeuropa plant in Setubal, Portugal.
The production version of the ID. Every 1, likely simply named the ID.1, will be an important vehicle for VW. It will serve as its entry-level EV and start at around €20,000 (~$21,000), allowing it to rival the BYD Seagull that’s destined for Europe. To build and sell a small EV for so little money, it makes sense why VW wants to make the most of cheap labor and energy costs in Portugal.
Read: ID. Every1 Previews VW’s Cheapest EV
According to VW boss Thomas Schaefer, the site is one of their most cost-efficient factories in Europe and he believes the ID.1 will serve an important role in bringing new consumers to the brand, Auto News reports. During the same interview, Schaefer revealed VW might also tap Chinese suppliers for various ID.1 parts, allowing it to reduce costs compared to usually locally sourced components.
The ID.1 will be sized between the Polo and the pint-sized Up! but should have interior space to match the slightly larger Polo. Like the concept, the road-going model will be based on VW’s new MEB front-wheel drive platform and have a single electric motor with 94 hp. The company hasn’t said what size battery pack the EV will have.
VW’s entry-level EV will also be the first of its models using the electric architecture currently being developed alongside Rivian. The two automakers announced a tie-up last year and the German brand is investing $5.8 billion into the American EV manufacturer. The first VW Group products to launch with the new architecture will come from Porsche and Audi, launching in 2027.
According to VW Group chief financial officer Arno Antlitz, it’ll be “difficult” for the company to achieve positive margins with the ID.1, but he thinks it’ll relieve pressure on some of VW’s more profitable EVs, like the ID.2.
