Latest news with #ID.1
Forbes
22-03-2025
- Automotive
- Forbes
Volkswagen Gathers Investor Support, But EV Performance Needs Work
Volkswagen electric ID Buzz. Volkswagen's profit-making prospects are on the mend and there's a grudging positivity among investors who have lived through a few false dawns over the years. Moody's Ratings has been doing its more conservative sums since VW announced its results for 2024 earlier in March and it's a mixed verdict. Moody's downgraded a long-term issue, affirmed a short-term one and changed the outlook to stable from negative. VW expects its operating profit margin to increase to between 5.5% and 6.5% in 2025 compared with 5.9% in 2024. Sales will rise by up to 5%. In 2024, VW sales revenue rose 0.7% as global sales fell 2.3%. VW's 2024 operating profit fell 15% to €19.1 billion ($20.9 billion) on sales of €324 billion ($354 billion). Moody's said VW's operating performance will remain under pressure through most of 2026 because of - HSBC Global Research rates VW preference and ordinary shares as 'buys'. 'With the hard decisions largely behind VW, the challenge now is execution and initial results look encouraging. VW is not a quick fix scenario; it is a complicated colossus, but we see the prospect of gradual improvement as compelling,' HSBC said in a report headed 'Small steps forward'. Late last year VW announced a cost-cutting plan and attempted to streamline its politicized corporate structure. It had sought to close three German factories, but late last year union leaders declared a 'Christmas miracle' because there were no immediate factory closures, layoffs or wage cuts. Volkswagen did announce more than 35,000 job cuts and a capacity reduction of more than 700,000 vehicles. VW agreed to keep 10 German factories running and retain job security until 2030 and planned to make €15 billion ($15.6 billion) in efficiency gains. Investment bank UBS couldn't bring itself to recommend buying VW shares, upgrading its advice to 'neutral' from 'sell'. UBS said in a report it wasn't bullish on VW yet because business in China was still worrisome, it doubted VW's ability to make profits from its new small EVs, the ID.2 coming next year and the ID.1 in 2037. It described the EV-centric U.S. strategy as the wrong product at the wrong time. Investment researcher Bernstein, described VW's position for investors as 'Still in 'show-me' territory'. Volkswagen ID.7 electric sedan. (Photo by) 'What remains unresolved to our mind is VW's ability to execute its strategy and to rein in what still appears to be profligate levels of R&D and CAPEX,' Bernstein said. 'This spending does not seem to have accelerated the launch cadence of critically needed vehicles, whether they be affordable BEVs for VW brand (ID.2, ID.1) or a 2nd generation ICE version of the Porsche Macan built on existing Audi underpinnings (2028 launch?),' the report said. Newly provided guidance for VW brand cars illustrates just how far its targets have slipped. VW brand should achieve a 5.5% operating margin in 2027 and 6.5% in 2029 after 2.9% in 2024. Just under two years ago the 6.5% margin was set for 2026. Investment researcher Jefferies was more positive, in its report headlined 'On the Mend'. It rates VW a 'buy'. 'We continue to see most indicators moving in the right direction and a convincing picture of top line preservation and previously unheard-of adjustments in cost and capacity. By protecting share and nurturing technical alliances to rein in capital spending, we think VW Group is building a sustainable global position in the industry transition,' the report said, with its 'buy' recommendation. Berenberg Bank retained its 'buy' recommendation, saying it was impressed by cost reduction and inefficiency programs. New product momentum was impressive with about 30 new ones across all brands (VW, Audi, Skoda, SEAT/Cupra, Porsche) this year. The EU's relaxation of CO2 emissions rules will save a lot of money too. The EU has decided to ease the rules for CO2 emissions in 2025 by extending them for two extra years. VW was seen as the principal beneficiary of this concession with analysts expecting a €1.5 billion ($1.6 billion) hit to earnings before the EU Commission's decision. ID.4, the first electric Volkswagen SUV. Moody's reflected the general worry about VW's attempt to ramp up its EV offerings. 'The transition to electric vehicles has been slower and more costly than expected, constraining Volkswagen's profitability, as electric vehicles relative profitability is still lower compared to combustion vehicles,' Moody's said.
Yahoo
13-03-2025
- Automotive
- Yahoo
VW eyeing GTI version of the ID.1 EV
As EVs become more affordable, many buyers hope automakers also work to electrify vehicles they've come to love over the years. Smaller VWs, like the Golf and Rabbit, have enthusiastic fan bases who are passionate about GTI versions of those vehicles. If VW has its way, the (or just ID.1 for short) could be the next small VW with a rabid fanbase of GTI enthusiasts. Of course, a lot hinges on whether we see a GTI ID.1, but it's exciting that VW is even considering another electrified GTI. The VW ID.1 is destined for Europe, with VW saying it is 'from Europe, for Europe.' This small hatchback is meant for city-dwellers who want to remain independently CEO Thomas Schäfer describes the ID.1 as 'the last piece of the puzzle,' adding that "this is the car the world has been waiting for.' It's also the first car built in collaboration with Rivian, which is aiding VW with software architecture for its next-generation EVs. While we won't see the ID.1 stateside, a GTI version could be produced if it sells to Autocar, Volkswagen's Technical Lead Kai Grünitz said the possibility of an ID.1 GTI is not out of the question. 'We're using modules from the MEB platform, but it depends on various factors, including customers' reactions to this car," Grünitz said. 'Also, we have the and we have the ID.2all, which will get a GTI version. Having everything in the ID.1 would mean it's not necessary to have everything in the ID.2. The car [ID.2] is larger and has a lot more functions and more value. It's the same as with an Up and a Polo. So we will see.'VW is set to deliver a Golf GTI EV in 2026, so the U.S. will soon have an electrified VW EV Golf GTI is more aligned with the ID.2, so a GTI ID.1 would be a touch smaller, like a Rabbit GTI compared to a Golf GTI. The EV Golf GTI and ID.2 are built on the MEB 21 platform, streamlining modular auto production in the EV realm. The EV Golf GTI will reportedly have 320 horsepower and the same engine as the ID.7. It's believed to start at $40,000. The VW GTI is an enthusiast's vehicle. Golf die-hards love the GTI and have lively discussions about the best iteration. Even casual onlookers know GTIs as tiny but mighty street racers. Like all automakers, VW wants to engage those enthusiast groups in the era of electrification. The GTI nameplate helps VW stand out, and it will make a huge difference if VW can create a fleet of solid EVs from which we want a bit more oomph. While we'd like the ID.1 to come stateside (heck, call it a Rabbit, we won't mind), it would be just as lovely to see Europe get an insanely powerful small EV from a brand with a long history of making them.
Yahoo
17-02-2025
- Automotive
- Yahoo
Volkswagen has a plan to turn things around
There's no denying that Volkswagen has been on a downward trend over the past few years, and now the automaker themselves recognizes that fact. With that recognition comes pieces put in place to fix the problem. Volkswagen has a plan to catch up to competitors, and it all starts in Wolfsburg, competitors and electrification have put Volkswagen between a rock and a hard place. In order to catch up to the competition, Volkswagen has a strategy they're calling Triple A, which stands for Accelerate, Attack, and Achieve. In order to catch up to the competition, Volkswagen plans to put nine new models on the road by 2027. So far, VW has confirmed two smaller, more affordable models will join the ID. family, namely the ID.2, expected to arrive in 2026, and the ID.1, expected in 2027. Volkswagen plans to unveil the new ID.1 at the beginning of March. The upcoming model will feature an all-electric powertrain and start at around €20,000, or roughly $20,900 USD. Employees at the Wolfsburg plant will see the upcoming model before the general public. 'An affordable, high-quality, and profitable electric Volkswagen from Europe for Europe – that's the Champions League of automotive engineering!' said Thomas Schäfer, CEO of VW Passenger Cars. The Wolfsburg plant will remain the main stage for Volkswagen's electrification plans. In order to make way for new technology to produce electric models, Volkswagen is moving production of the Golf to Mexico. The upcoming all-electric Golf, however, will be built in Wolfsburg with help from Rivian. It's expected to return towards the end of the decade, marking the model's comeback after VW ended production of the original e-Golf back in December it currently stands, Volkswagen certainly isn't in a bad spot. The German automaker has the ID. family in their pocket, which has been one of the automaker's best-selling models. Since the ID. brand hit the market in 2019, more than 1.35 million models have left dealer lots under new ownership, just over a quarter of which were the ID.3. Last year, the VW ID.3 sold 383,100 EVs globally. Currently, Volkswagen only offers the ID.4 and ID. Buzz in the United States. Given how much Americans love their larger vehicles, it's not a bad offering by any means. Unfortunately, the ID. Buzz was met with a lukewarm reception, largely due to its price. On the bright side, Volkswagen is expected to bring the ID.8, an all-electric three-row SUV, to the United States in the next few years. Volkswagen also offers more all-electric models in Europe and other markets, including China. In 2024, just over 149,000 VW ID.3 models were sold, while the ID. Buzz sold just under 30,000 units. The VW ID.4, the standard SUV version, and ID.5, the coupe model, saw the best sales of VW's ID. family, coming in at 182,000 the introduction of two smaller, more affordable all-electric models, Volkswagen is set to make inroads with a new demographic of consumers. On top of that, a larger all-electric three-row SUV will give American drivers another model to choose from. Volkswagen is currently in phase one of its Triple-A strategy. With plenty of all-new EVs on the horizon, the German automaker is positioning itself to battle with Chinese automakers on a global scale in the near future. While Volkswagen still has some catching up to do, the fact that it has not only avoided closing plants but is also setting them up for the future is a positive indicator. On the other hand, by the time its new EVs launch, the competition will be even fiercer. There's not much left to do but wait and see what the German automaker has in store.
Yahoo
06-02-2025
- Automotive
- Yahoo
Volkswagen Teases $21,000 ID.1 Electric Hatchback Due in 2027
Volkswagen yesterday teased a new affordable EV for the European market, and it's expected to be called the ID.1. The ID.1 will be previewed by a concept in March, with production due to start in 2027. The ID.1 will start at roughly the equivalent of $21,000, slotting in below the upcoming $26,000 ID.2 electric hatchback. Volkswagen recently announced that the ID.7 electric sedan—initially set to reach the U.S. market last summer before being delayed—wouldn't go on sale in America after all. That leaves just the ID.4 and as VW's electric offerings in the U.S., with no clear plan for what's next. But over in Europe, work continues apace on a series of new EVs, and Volkswagen just teased one of the most enticing options, an affordable electric hatchback that is expected to cost around $20,700. Volkswagen yesterday revealed the teaser image of its upcoming entry-level EV at an event in Wolfsburg, Germany. The hatchback, which is expected to be called the ID.1, has a friendly face with the headlights set into a narrow rectangular band that runs across the fascia. The design also has what appears to be a gloss-black panel and an illuminated VW logo. The headlights themselves feature a rectangular unit between two LED brackets, and a video posted to Instagram shows an animation of one of the headlights "winking." Thin vertical LED running lights sit on the outer edges of the bumper. Volkswagen plans to show off a concept version of the entry-level EV in early March of this year, with the production-ready version set to debut in 2027. Volkswagen says the starting price of the ID.1 will be roughly $21,000, although we wouldn't be surprised to see that change slightly by the time production is scheduled to start in 2027. Unfortunately, the ID.1 will almost certainly remain forbidden fruit for American shoppers. The ID.1 will slot in below the ID.2, which is expected to go on sale in Europe in 2026 and will be an evolution of the ID.2all concept shown in 2023. Both models are expected to be underpinned by an iteration of the MEB platform. Volkswagen says the ID.2 will carry a base price of nearly $26,000. Volkswagen has also shown an concept, which sports similar bodywork to the ID.2all and shows the future of the German automaker's sporty moniker. The ID.2, like the ID.1, will probably not be offered in the U.S. Volkswagen is also planning for the long-running Golf to spawn an all-electric variant for its next generation, although it's unclear if this will also serve as a replacement for the ID.3, a Golf-sized EV that's been a popular choice in Europe since arriving in 2019. The electric Golf will ride on the new SSP platform, which VW also says will form the basis for an upcoming electric version of the T-Roc, a strong-selling subcompact SUV in Europe. In order to free up space to build these models at its Wolfsburg factory, Volkswagen will move production of the gas-powered Golf to Mexico. While Volkswagen has been slow to introduce EVs in the United States, its ID line of electric cars has been popular in Europe and other parts of the world. Since VW launched the ID.3, the automaker has sold over 1.35 million ID-branded vehicles, of which 500,000 have been the ID.3. Last year, Volkswagen sold 383,100 EVs globally. Volkswagen plans to launch nine new models by 2027, including both the ID.1 and ID.2. You Might Also Like Car and Driver's 10 Best Cars through the Decades How to Buy or Lease a New Car Lightning Lap Legends: Chevrolet Camaro vs. Ford Mustang!
