At a Wolfsburg press event, VW brand chief Thomas Schäfer confirmed that the forthcoming ID. 1 compact EV will be assembled at Volkswagen’s Palmela facility in Portugal starting in 2027. Schäfer explained that producing the €20,000-ish model in Germany would be prohibitively expensive, making Portugal the most economically viable option.
Earlier contenders for production included plants in Poznań, Poland, and Škoda’s Mladá Boleslav site in the Czech Republic, but cost considerations tipped the balance in favor of Palmela. The plant already builds the Golf-sized T-Roc and benefits from proximity to PowerCo’s new battery-cell facility in Sagunt, Spain set to supply cells for VW’s small-car lineup.
The ID. 1 joins the ID. 2all (to be built in Spain for about €25,000) in VW’s strategy of localizing low-cost EV production outside Germany. Despite initial hopes for sister models under the Cupra or Škoda brands, management ruled out rebadged variants for now, citing the slim profit margin only a few hundred euros per car and the losses incurred on the erstwhile e-Up! project.
However, VW technical director Kai Grünitz noted that if market conditions improve post-2027, the Group could revisit the idea of Cupra or Škoda versions. Meanwhile, the ID. 1 will be the first Volkswagen to employ the new Rivian-co-developed electronics architecture, reducing control-unit counts and overall cost.
Under the hood, the ID. 1 will feature a 70 kW electric motor enabling a top speed of 130 km/h, with a WLTP-certified range of at least 250 km. By combining competitive pricing with streamlined production and next-generation components, VW aims to make the ID. 1 its most affordable and profitable EV to date.
