Volkswagen has decided to turn the page on combustion engines for its city cars. Under the direction of Thomas Schäfer, the automaker announces a major transition to electric, driven by new emission standards that make small gasoline models financially inaccessible. Discover how Volkswagen is adapting to this strategic shift with technological and industrial innovations.
The 3 key facts not to miss
- Volkswagen plans to launch the ID. Polo, ID. Cross, and ID. Every1 models, fully electric, by 2026-2027.
- The manufacturer is reducing its production costs by 30% in Germany and plans to produce its own battery cells to control costs.
- Volkswagen is collaborating with Rivian to improve the software interface of its electric vehicles.
New emission standards make combustion obsolete
Thomas Schäfer, at the helm of Volkswagen, recently confirmed the discontinuation of gasoline engines for small cars. Emission standards, particularly Euro 7, require anti-pollution equipment that significantly increases production costs. The price of a gasoline car in the city car segment would become prohibitive for customers.
A transition to electric
Volkswagen has chosen to develop its future models on the MEB+ platform, an enhanced version of its electric base. The new city cars will be offered at a price around 25,000 euros, a major change from the previous strategy of offering both combustion and electric options.
As part of this transition, Volkswagen has taken drastic measures to reduce its production costs in Germany. The Wolfsburg, Emden, and Zwickau plants have managed to lower their manufacturing expenses by 30%, thanks to an agreement with the IG Metall union. However, this plan also includes the elimination of 35,000 jobs by 2030.
Internal battery production and partnership with Rivian
To reduce dependence on Asian suppliers, Volkswagen has invested in internal battery production through its subsidiary PowerCo. Production sites are already operational in Salzgitter, Valencia, and Canada, while electric motors are produced in Germany.
Furthermore, Volkswagen has acknowledged the shortcomings of the first generations of its ID. models in terms of software interface. To address this, the manufacturer has partnered with Rivian, an electric specialist, to develop a new electronic architecture. This collaboration aims to offer an improved and intuitive user experience.
Volkswagen: a major player in transformation
Founded in 1937, Volkswagen has established itself as one of the largest automakers in the world. Historically known for its iconic models such as the Beetle and the Golf, the company has adapted to market changes and environmental challenges.
With the rise of electric vehicles and increasing legislative constraints, Volkswagen has initiated a radical transformation of its range. This electrification strategy is accompanied by ambitious industrial measures, aimed at ensuring competitive production costs while innovating technologically. The success of this transition will largely depend on consumer reception and the company’s ability to maintain attractive prices.