Volkswagen’s ID.1 entry-level EV will be here sooner than expected, thanks to Rivian

Volkswagen is gearing up to launch its new entry-level EV, the ID.1. The new electric car will be its cheapest so far, starting at under $22,000 (20,000 euros). It will also kick off a new “software-defined” era at VW. Thanks to its partnership with Rivian, Volkswagen’s first SDV, the ID.1, will be here even sooner than expected.

Volkswagen credits Rivian for software in its new ID.1

Earlier this month, Volkswagen revealed the ID.EVERY1 concept car, a preview of its upcoming entry-level electric car.

According to Volkswagen brand CEO Thomas Schäfer, the ID.EVERY1 is “the last piece of the puzzle” as it plans to offer the widest model selection in the volume segment.

Not only will the ID.1 will be Volkswagen’s most affordable EV, but it will also be its first software-defined vehicle. Volkswagen’s tech boss, Kai Grunitz, said the production version will be “the first model in the entire Group to use a fundamentally new, particularly powerful software architecture.”

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Grunitz explained, “This means the future entry-level Volkswagen can be equipped with new functions throughout its entire life cycle” through software (OTA) updates.

On last week’s earnings call, VW brand CFO David Powels confirmed that the ID.1 will launch in 2027 as the company’s first software-defined vehicle (SDV).

According to Powels, Volkswagen is launching its first SDV, the ID.1, ahead of schedule thanks to its partnership with Rivian.

Rivian and VW launched their new EV software joint venture in November, a deal worth up to $5.8 billion. The German auto giant invested $1.3 billion in Rivian last year, and it looks to be already paying dividends.

Last March, Schäfer said the first software-defined VW would not arrive until 2028. Powels confirmed Volkswagen plans to launch the production version of the ID.1 in 2027.

In response to Automotive News Europe, Schäfer said the ID.1 is the first Volkswagen SDV due to its “updatable and very performant electric/electronic software architecture,” something it’s doing through its new JV with Rivian.

Volkswagen will build the ID.1 in Portugal because of the lower energy costs and labor. Although the Setubal plant is one of its most efficient Volkswagen factories, CFO Arno Antilitz warned that positive margins on the ID.1 will still be hard to achieve.

The entry-level EV is 3,880 mm long, fitting in between the former Volkswagen Up (3,600 mm), ID.2all (4,050 mm), and Polo (4,074 mm). Based on its new front-wheel-drive MEB platform, the ID.1 is expected to have at least 250 km (155 miles) of WLTP driving range.

It will launch after the production version of the ID.2all as part of nine new entry-level Volkswagen EVs arriving by 2027.

Source: Automotive News, Volkswagen