The Volkswagen Group has given the green light to the production of electric models priced at 20,000 euros. These models will be available from 2027.
Today, the Volkswagen Group’s Board of Directors approved this decision. In fact, these models will be part of the so-called core brands of the German automotive giant (Volkswagen, Skoda, Seat/Cupra, and Volkswagen Commercial Vehicles). By 2027, the Volkswagen Group will invest 180 billion euros, with 122.4 billion devoted exclusively to electrification and digitalization.
Oliver Blume, CEO of the Volkswagen Group, explained that “generations of people associate the strong brands of the Volkswagen Group with their first car and affordable mobility. As a group with strong brands, we continue to uphold this social responsibility to this day. That’s why I am very happy that we are launching a future-oriented project. This is about basic-level electric mobility for Europe by Europe. In doing so, we combine a clear commitment to Europe as an industrial location, a European industrial policy, and ultimately act in the interest of European customers.”
Thomas Schäfer, CEO of the Volkswagen brand and director of Volkswagen’s core brands, stated, “In order for electromobility to become widespread, attractive vehicles are needed, especially in the entry segment. Our brand promise is: electromobility for everyone. This promise is now being fulfilled in Volkswagen’s core brands.”
The head of the Volkswagen brand acknowledges that “despite the appealing price, our vehicles will set standards in the entry-level segment in terms of technology, design, quality, and customer experience. This task has become more demanding due to rising energy, material, and raw material costs. One thing is clear: Europe’s electric mobility for Europe can only succeed with political support and competitive framework conditions.”
Europe will be the region where these 20,000 euro models are produced. Additionally, this decision comes after the end of discussions between Renault and Volkswagen to jointly produce a small, low-cost electric vehicle.
This commitment by the Volkswagen Group comes at a time when sales forecasts for electric vehicles have been revised downwards. In fact, in the first quarter of the year—the latest available data—the German automotive giant delivered a total of 136,400 electric models worldwide, a 3.3% decrease compared to the same period last year.
The drop in deliveries of electric models from the Volkswagen Group in Europe was particularly significant, as they decreased by 24.3%, to 74,400 vehicles sold.
This decision also comes at a time of not only transformation in the global automotive industry but also coincides with the massive influx of Chinese brands into the Old Continent.
