In a press launch, Volkswagen Group says it’s focusing its strategic alignments and launching efficiency packages in any respect manufacturers to strengthen profitability and money stream. CEO Oliver Blume mentioned, “Now we have realigned Volkswagen Group strategically and technologically. Buyer orientation, entrepreneurship, and group spirit decide our actions. Bold, strategic return targets with structured efficiency packages strengthen our monetary robustness.”

That could be a load of glad discuss that really says little or no. However Autocar has its personal tackle the information and it features a suggestion that an ID.1 car — which might be the religious successor to the e-Up! — could also be within the works and will have a base value of round €17,000.

Volkswagen e-Ups in Barcelona, Spain. Photograph by Zach Shahan | CleanTechnica

Utilizing a brand new bespoke electrical platform that can underpin comparable fashions from sibling manufacturers Cupra and Skoda, the ID.1 will sit beneath the manufacturing model of the not too long ago revealed ID.2all idea, which VW is aiming to promote for round £22,500 (€26,169). Volkswagen Group CFO Arno Antlitz not too long ago mentioned he believes the agency can ship electrical automobiles at this value level, citing the emergence of cheaper battery supplies and manufacturing strategies.

“In the intervening time, we’re fairly assured that we will obtain that value level. There are a variety of improvements approaching the technical aspect. This automotive could have the primary in-house battery cells from our Valencia plant. We’re simply ramping up. We could have way more scale by then. [We have also seen a slight] enchancment or aid on the uncooked materials value. Take a look at lithium: it got here down. Nickel got here down. So, from this attitude, we’re fairly assured that we will obtain that €25,000 [£22,500] goal and, on the similar time, have an honest margin.”

Volkswagen has not too long ago introduced it has a brand new dry coating course of for its batteries that it says will decrease the value of batteries for all of its electrical automobiles. Volkswagen Group is placing a significant emphasis on creating unified battery cell expertise that may be utilized throughout all of its manufacturers, and will probably scale back prices by as much as 50%.

Volkswagen ID.1

His feedback referred particularly to the manufacturing viability of the ID.2, however might counsel the rumored ID.1 at a cheaper price level is possible. Autocar says that whereas particulars of the ID.1 structure have but to be divulged, will probably be distinct from the MEB entry platform that can be shared by the ID.2, Cupra Raval, and Skoda’s compact crossover, all of which is able to all be inbuilt Spain starting in 2025. The brand new platform can be developed by Volkswagen Group, with Skoda enjoying a key position. It will likely be comparable in measurement and inside area to the VW Polo.

Volkswagen model boss Thomas Schäfer has declined to say whether or not the brand new metropolis automotive can be known as ID.1 or ID Polo. Though, he has mentioned using traditional mannequin names can be reserved for true successors to the unique. The choice to construct the brand new small automotive might depend upon the ultimate Euro 7 emissions guidelines. If they permit Volkswagen to proceed utilizing an inner combustion engine within the Polo, the small electrical automotive could possibly be placed on maintain.

If there may be an ID.1, will probably be meant principally for city use, that means vary can be a secondary concern. That, in flip, will permit the corporate to suit a smaller battery which is able to assist make the cheaper price attainable. Volkswagen has developed a 38 kWh LFP battery for the ID.2all, and that’s more likely to be the biggest capability thought of for the brand new mannequin. That might permit a spread of round 200 would nonetheless probably permit for a spread of beneath 200 miles, which might be much like the Fiat 500e.

Schäfer has hinted the brand new low value mannequin could possibly be inbuilt markets reminiscent of India, the place Volkswagen Group has manufacturing amenities and the price of manufacturing is decrease. Nonetheless, it could possibly be provided in Europe and tariff guidelines may make some native manufacturing attainable.

Volkswagen SSP Platform Again On Monitor For 2026

We hear lots about platforms for electrical automobiles. Final week, Hyundai introduced it’s planning the successor to its E-GMP EV platform. The brand new Built-in Modular Platform is designed to function the idea for all EVs from the Hyundai Group sooner or later. A platform is an extension of the manufacturing philosophy pioneered by Henry Ford greater than a century in the past. As an alternative of creating each automotive by hand, standardize the design and the elements to make it value much less.

The trendy platform for electrical automobiles seeks to standardize as many elements clients don’t see as attainable — battery administration and cooling programs, motors, battery packs, inverters, and so forth — so automobiles might be assembled shortly and profitably. The wheelbase and the width of the automobiles produced might change however the coronary heart of the automobiles would be the similar and are available from a typical elements bin. These days, software program has turn into as vital as {hardware}, as producers battle to include over-the-air updates and semi-autonomous driving programs into their automobiles — two improvements that Tesla pioneered a decade in the past.

When Herbert Diess was operating the present at Volkswagen Group, he was pushing the event of a second-generation electrical automotive platform that might serve the wants of nearly each electrical automotive manufactured by all the assorted manufacturers throughout the group. Known as the Scalable Methods Platform, it was imagined to keep away from the prices related to utilizing a lot of completely different electrical automotive platforms. Whereas ready for the SSP platform, Audi is main the way in which on a Premium Efficiency Electrical platform that would be the foundation of the upcoming Porsche e-Macan and Audi Q6 e-tron.

Finally, Volkswagen Group desires a unified electrical automotive platform that can function the idea for every part from small metropolis automobiles to mighty sports activities automobiles. As it’s, is has the MEB platform, a deliberate MEB+ platform coming in 2025, an MEB Entry platform that can be used for automobiles just like the ID.2all, maybe yet one more platform for the proposed ID.1 talked about above, and the PPE from Porsche/Audi.

The CARIAD Dilemma

Just a few months again, there was an rebellion at Volkswagen as a result of the software program growth for the SSP platform was years behind. Porsche and Audi had been screaming that their growth plans had been being torpedoed by the delay. Consequently, the whole administration group at CARIAD, the subsidiary chargeable for software program growth, was tossed overboard and there have been dire warnings that SSP can be delayed till 2028 — on the earliest.

And but, final week, on the capital markets day occasion, present Volkswagen Group CEO Oliver Blume advised buyers the SSP mission is again on monitor and can be prepared by 2026. That new administration group at CARIAD have to be composed of superheroes! Blume advised these in attendance, “The SSP structure will steadiness the necessity for scale and standardization with differentiation and velocity,” based on Autocar. Initially, SSP was imagined to be able to dealing with as much as 1100 horsepower, however Blume now says the platform will be capable to assist automobiles with as much as 1700 horsepower. That hints at the potential of some fairly wonderful future electrics coming from Porsche, Bentley, or Lamborghini.

Blume added that “most” automobiles on the SSP platform will obtain revenue margin parity with standard automobiles. That parity is barely attainable with a few of the fashions primarily based on the MEB platform. “Architectures cowl as much as 75% of all materials prices for BEV, in comparison with as much as 10% for ICE,” Blume mentioned. “Subsequently, architectures are a key driver for profitability sooner or later.”

With the SSP platform, charging occasions from 10% to 80% SOC can be lowered to about 12 minutes in comparison with 35 minutes for MEB-based fashions. As well as, the software program 2.0 and digital structure will permit for hands-free driving as much as Degree 4.

Accountability for implementing the SSP platform can be assigned to numerous group members. Structure elements for superminis and metropolis automobiles can be led by the Volkswagen model and utilized by Cupra, Skoda, and Audi. Compact and midsized elements can be developed by Audi and utilized by Volkswagen, Porsche, and Skoda. Porsche will lead growth of huge automotive elements utilized by itself, Audi, Bentley, and Lamborghini. Blume claimed that Volkswagen Group might scale back capital expenditure and growth prices by 30% in comparison with the MEB platform.

The Takeaway

Like Hyundai, Ford, GM, and most different legacy automakers, Volkswagen is placing some huge cash and energy into the transition to electrical automobiles. However as one individual commented in our latest Hyundai story, they’re nonetheless planning to crank out tens of millions and tens of millions of standard automobiles and vans powered by infernal combustion engines to pay for the price of the transition. The EV revolution is progressing, however it’s removed from over.