Volkswagen Autoeuropa has announced its new low-cost electric vehicle (EV) will be produced in Portugal, positioning the country as a leader in transitioning the European automotive industry, reports Portuguese business and investment news outlet AICEP.
Production of the Volkswagen ID.Every1 should begin within two years as the car, unveiled earlier this month, is still in its pre-production phase. Technology news website New Atlas describes it as “a strong, handsome hatchback that far outshines its predecessor,” remarking that the four-seat hatchback is something one would “happily drive on the daily.”
The 388-centimetre-long Every1 is a full 28 centimetres longer than said predecessor, the Up, although its range is slightly smaller at a minimum of 250 kilometres. A difference of 10 kilometres, however, matters little in the face of the Every1’s charming, robust design and far smaller price tag – just 20,000 euros (US$21,845), a starting price nearly 7,000 euros less than the Up. CEO of Volkswagen Autoeuropa, Thomas Hegel Gunther, touted the Every1 as making “electric mobility more accessible and sustainable in Europe.”
“This is truly a historic day for Portugal and a very happy one for all of us,” Minister of Economy Pedro Reis told the outlet. “In one stroke, the Portuguese economy secures the production of a new electric vehicle, ensuring the future of the Setúbal plant as a next-generation Volkswagen factory and of a vast value chain of national suppliers for many years.”
Autoeuropa is already a major player in the Portuguese automotive industry. Its Palmela factory in the Setúbal district, which exclusively produces the compact crossover SUV, the T-Roc, employs over 4,800 people and generates around 3.8 billion euros in sales. Last year, it hit its highest production numbers ever with 236,100 units, accounting for 4 percent of national exports and 1.3 percent of Portugal’s GDP. Production of the Every1 will be developed at this plant, taking advantage of the economic and structural factors within the company’s existing production network.
[See more: China’s CALB is to invest US$2.09 billion in an EV battery factory in Portugal]
Beyond adding a second vehicle to the production line, the investments announced by Autoeuropa include a next-generation electrified factory, the adoption of new production and logistical processes, as well as robotic assembly of battery systems.
The factory will also become more efficient to make it more competitive globally, while also aligning with European climate goals for carbon neutrality. The decision to make a new type of vehicle in Portugal may also draw new suppliers to the country, bolstering the electric vehicle capabilities of its automotive cluster.
The Palmela factory is part of that supply chain itself, producing 80 percent of its parts for other plants and brands in the Volkswagen Group. “We supply a total of 31 customers with parts for 36 different models,” Hegel Gunther told Automotive Manufacturing Solutions last October. “We are currently investing in a new press, which will be put into operation next year and will enable us to be even more productive.”
