ID.1 production: VW seals deal with Portugal

Volkswagen has officially signed an agreement with the Portuguese government to produce the series version of the ID.Every1 at its Palmela plant. The government will support the production of the small EV with €30 million.

Production of the model, expected to be called ID.1, is scheduled to begin in “mid-2027”. VW brand boss Thomas Schäfer had already confirmed the allocation to the Palmela plant shortly after the premiere of the ID.Every1 concept car in March. The internal decision had therefore been made some time ago. While it was clear that the production version would be built in Europe, cost considerations ultimately tipped the balance in favour of the Portuguese site.

The Portuguese government will subsidise Volkswagen’s investment in the plant with €30 million. Notably, neither Volkswagen nor the government mentioned the subsidy amount in their official statements, which only referred to the signing of the agreement. The figure was reported exclusively by the newspaper Observador

The funding will not only benefit production of the ID.1 but also the facelifted T-Roc, which is due to launch later this year. In April, information leaked suggesting production would start in September 2027. The latest announcements, however, continue to speak more generally of “mid-2027”, which could indicate an earlier start of production.

The agreement was signed this week during a ceremony at the Palmela site to mark the inauguration of a new large press and the groundbreaking for a new paint shop. Several Portuguese ministers attended, including Manuel Castro Almeida, Minister for Economy and Territorial Cohesion. He described Volkswagen’s decision to build the new electric car in Portugal as “a strategic sign of trust in our country”.

“With the signing of this document, we are taking another decisive step towards the future and formalising our commitment to the ID.Every1 project, the new electric model from the Volkswagen brand that will be produced in Palmela,” said Thomas Hegel Gunther, Head of the Palmela plant.

The VW plant in Palmela – officially operated by Volkswagen Autoeuropa Lda. – is located south of Lisbon near the city of Setúbal, which often lends its name to the site. The factory currently produces the Golf-sized compact SUV T-Roc. From 2027, the updated T-Roc and the ID.1 will roll off the production line in parallel.

portugal.gov.pt, volkswagenautoeuropa.pt, observardor.pt (all in Portuguese)

This article was first published by Sebastian Schaal for electrive’s German edition.