German auto giant Volkswagen hopes to significantly increase the pace of development for its entry-level electric models planned for 2027.
"The €20,000 (about $22,000) VW will set standards in terms of design, quality, equipment and technology at an attractive price," said Volkswagen Group chief executive Oliver Blume at the company's general meeting on Wednesday. "And we are also demonstrating that Volkswagen is able to develop quickly, efficiently and effectively - with 'Europe Speed.'"
At 36 months, the development time is significantly shorter than for previous models.
The VW Group's management board gave the green light for the electric car model, which carries the working title ID.1, on Tuesday.
The automaker hopes to round out the lower end of its electric vehicle model range with the car and compete in the entry-level electric segment.
"We are thus keeping our promise to offer affordable mobility for generations," said Blume.
He said the lower-priced model would be in line with the company's name, which in German means "people's car": "The car is an expression of our brand identity - a genuine Volkswagen. From Europe and for Europe."