Volkswagen ID 3 compact SUV, two £20k entry-level EVs confirmed
VW plans to launch 10 new EVs for 2026, with crossover edition of ID 3 and simplified line-up confirmed
As CEO Thomas Schäfer marks 100 days in job, he outlines future strategy and changes he has made so far
A crossover version of the popular Volkswagen ID 3 family hatchback is on the way as Volkswagen looks to capitalise on the still fast-growing small SUV market.
CEO Thomas Schäfer has confirmed that the company is “working hard to develop an additional compact SUV based on the ID 3 so that we can also launch a Volkswagen product in this fast-growing vehicle segment”.
The Volkswagen ID 4 is currently the German brand’s smallest electric SUV, sharing the MEB platform with the ID 3, but its footprint is significantly bigger than its hatchback counterpart.
Volkswagen will also introduce two versions of its highly anticipated entry-level EV, which is billed to cost less than £20,000, described as “a small car and a sporty crossover variant” by Schäfer.
These are among 10 new EVs to be launched by 2026, which Schafer claimed means Volkswagen will have the broadest electric portfolio in the automotive industry.
“From the entry-level e-car with a target price of under €25,000 to the Volkswagen ID Buzz and the new flagship Volkswagen ID Aero, we will have the right offer in every segment,” he said.
He added that the Volkswagen Group's MEB platform, which is currently the base du jour for EVs, continues to make “significant advances, for example in terms of range, performance and helpful features”.
The MEB platform will bow out later this decade, to be largely replaced by a new architecture called SSP, on which all volume-selling Volkswagen Group models will be based.
Schäfer said that Volkswagen is “shedding old habits” in terms of its product line-up, focusing on core models in the future and “noticeably simplifying our model range and packages over the next ten years”.
Inevitably that will mean some well-known ICE models will be no more and there will be significantly fewer specification options.
Schäfer said: “In each segment we compete in, we want to live up to our Leading Volume motto: do less but get it right.”
He was talking as he marked 100 days in the CEO role, in which he said there are three key focuses: best brand, best team, best results.
Talking about the latter, Schäfer said, in what appeared to be a subtle dig to the previous management: “Admittedly, in the past, this was more a snare than an impetus. That’s finally over now. Volkswagen, Seat, Cupra, Skoda and Volkswagen Commercial Vehicles: we’re leveraging the huge potential of the brand group volume to give us a competitive edge.”
He said the brands were clearly positioned and differentiated to address different customers, while there was a “lean engine room working behind the scenes on synergies and efficiencies”.
He reconfirmed that Skoda will develop the new Skoda Superb and Volkswagen Passat, as well as hold responsibility for India and the entry-level MQB A0 platform, while Seat and Cupra are leading the charge for small EVs. Volkswagen Commercial Vehicles meanwhile is running its autonomous driving development and Volkswagen is in charge of developing the new SSP platform.
Across its 23 production plants, Volkswagen is shifting the focus from individual models at each factory towards grouping by platforms. Schäfer said that by applying a principle of “develop once, implement worldwide”, it will save €220 million (£190.6m) this year. Its overall goal is to ensure 20% efficiency gains in synergy, 8% return on investment across its volume brands and that those brands account for 80% of entire group volume.
Schäfer also repeated his previous comments on the strength that he believes there is in the Volkswagen brand, saying: “People have smiles on their faces and pull out their smartphones when they see a Volkswagen Beetle, Bulli [Microbus] or Volkswagen Golf GTI. To us, our heritage is not a burden but a real asset.
“And that’s exactly what we want to build on again. Internally, I said to my team: “VW has to become a love brand again!”. A friendly brand that people like. A brand that listens and offers exactly what our customers want – especially in the electric and digital age of mobility.”