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Volkswagen Charts a Course for Revival with New EV Strategy

After years of decline, Volkswagen has acknowledged its struggles and is implementing a strategy to reclaim its competitive edge. Facing increasing pressure from Chinese automakers and the accelerating shift to electrification, the German automaker has introduced a turnaround plan known as Triple A—Accelerate, Attack, and Achieve. Central to this strategy is the launch of nine new models by 2027, beginning with two smaller, more affordable electric vehicles under the ID. family.

Volkswagen has confirmed that the ID.2, expected in 2026, and the ID.1, set to arrive in 2027, will be key components of its electrification efforts. The ID.1 is slated for an official unveiling in early March, featuring an all-electric powertrain with a starting price of approximately €20,000 (RM88,965). Employees at Volkswagen’s Wolfsburg headquarters will be the first to see the vehicle before its public debut.

Volkswagen Passenger Cars CEO Thomas Schäfer described the new model as a crucial achievement, stating that an affordable, high-quality, and profitable electric Volkswagen designed in Europe for the European market represents the pinnacle of automotive engineering. Wolfsburg will remain the core of Volkswagen’s electrification drive, though changes in production strategy are underway. To accommodate the transition, the company is relocating Golf production to Mexico, making space for electric vehicle manufacturing.

However, the all-electric version of the Golf will be produced in Wolfsburg, with assistance from Rivian. This model is expected to return towards the end of the decade, marking a comeback after Volkswagen discontinued the original e-Golf in December 2020.

Despite recent struggles, Volkswagen remains a major player in the EV market. The ID. family, which debuted in 2019, has proven successful, with more than 1.35 million units sold globally. The ID.3 alone accounted for over 383,100 sales last year, making it one of Volkswagen’s best-performing models.

In the United States, Volkswagen currently offers only the ID.4 SUV and the ID. Buzz electric van. While the ID.4 has been well received, the ID. Buzz faced a lukewarm response, primarily due to its high price point. However, Volkswagen plans to expand its American lineup with the ID.8, an all-electric three-row SUV, aimed at catering to the U.S. market’s preference for larger vehicles.

Meanwhile, Volkswagen’s EV presence remains stronger in Europe and China. In 2024, the ID.3 recorded over 149,000 sales, while the ID. Buzz sold just under 30,000 units. The ID.4 and its coupe-styled counterpart, the ID.5, led Volkswagen’s EV sales with a combined total of 182,000 units.

By introducing more accessible electric models and a larger SUV tailored for American consumers, Volkswagen aims to capture new demographics and regain its footing in the rapidly evolving automotive landscape. The coming years will determine whether the Triple A strategy is enough to steer Volkswagen back to dominance.

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