Volkswagen eyes up cost savings for its future €20k EV

  • As reported by Spiegel Business, Volkswagen Group is rumoured to be in the process of deciding the location to build the firm’s cheapest EVs, from 2027 onwards.
  • Factories reported to be under consideration include those in Czech Republic, Poland, and Portugal.
  • The preparations for the cheapest VW EV available come after Volkswagen Group CEO, Oliver Blume, confirmed that the new EV is set for a 2027 debut.

Volkswagen reviews costs to make its €20,000 EV a reality

Volkswagen is set to open two in-house battery cell factories in the near future: One in Germany, and one in Spain, with predicted start dates of 2025 and 2026 respectively. By coming online before the launch of Volkswagen’s €20,000 electric car, this could further help Volkswagen achieve that price point, with the manufacturer not having to rely on external battery suppliers, where the group would have less say over cost.

Hitting that key €20,000 barrier is looking ever more crucial. Renault have again reiterated that its upcoming Twingo EV will also be priced below €20,000, while recent Volkswagen ID.3 price cuts mean VW will need to make this EV cheaper enough to differentiate itself on the market. Another place where Volkswagen is reportedly looking to hit that lower price point is the infotainment system – with Spiegel reporting that the manufacturer is considering removing the infotainment system from this future EV, in favour of a dedicated app for your smartphone.

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Such a solution was already seen on this EV’s spiritual successor, the Volkswagen e-Up!, and more recently, the Citroen Ami. However, with EU law now requiring new cars sold to have safety features such as lane keep assist, and speed limit warnings, it remains to be seen how Volkswagen could implement this without a factory-fitted infotainment screen. Having these features controlled through a separate smaller screen, in front of the driver, could be one way to cut costs.

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