VW will build $ 21,000 ID.1 in Portugal, can use Chinese parts to save money

The brand’s electric tailgate baby will be smaller than the polo shirt and will cost around 20,000

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This is only a week that VW has previewed its new entry -level EV with the ID. All 1 concept, and already, the brand has confirmed where the production model will be built. It will not be given life in Germany, but rather to the VW Autouropa factory in Setubal, Portugal.

The production version of the ID. Every 1, probably simply named ID.1, will be an important vehicle for VW. It will serve as an entry -level electric vehicle and will start at around € 20,000 (~ $ 21,000), which allows it to compete with the BYD seagull which is intended for Europe. To build and sell a small EV for so little money, it is logical to know why VW wants to make the most of the costs of labor and inexpensive energy in Portugal.

Read: Id. Ever1 Preview VW The cheapest VW

According to the boss of VW, Thomas Schaefer, the site is one of their most profitable factories in Europe and he thinks that the ID.1 will play an important role by bringing new consumers to the brand, reports Auto News. During the same interview, Schaefer revealed that VW could also use Chinese suppliers for various ID.1 parts, which allows it to reduce costs compared to the components generally of local origin.

The ID.1 will be dimensioned between the polo shirt and the size of the pint! But should have an interior space to match the slightly larger polo shirt. Like the concept, the road model will be based on the new MEB front traction platform of VW and will have a single electric motor with 94 hp. The company has not said the size of the battery that the EV will have.

EV input of VW will also be the first of its models using the electrical architecture currently developed alongside Rivian. The two car manufacturers announced an update last year and the German brand invested $ 5.8 billion in the American manufacturer of electric vehicles. The first VW Group products to launch with the new architecture will come from Porsche and Audi, launched in 2027.

According to the financial director of the VW group, Arno Antlitz, it will be “difficult” for the company to reach positive margins with the ID.1, but he thinks that it will relieve the pressure on some of the most profitable electric vehicles in VW, such as the ID.2.