The major restructuring in the Volkswagen Group camp is in full swing, and the ultimate goal is extremely ambitious - the complete democratization of electric mobility. The German automotive giant plans to drastically reduce the production costs of its environmentally friendly models by the end of this decade, bringing them on par with traditional ICE machines. The key to achieving this economic triumph lies in the long-awaited SSP (Scalable Systems Platform) superplatform, the development of which took the concern much more time and nerves than originally planned.
If the predictions of the big boss Oliver Blume come true, the industry is in for a serious shake-up. Future battery vehicles based on the SSP architecture will be as cheap for the company as the current bestsellers based on the mass MQB platform that powers conventional cars. Currently, the backbone of the "green" range is the familiar MEB architecture, which we know from the Volkswagen ID.3, Volkswagen ID.4 and Cupra Born. The next evolutionary step, however, will be the implementation of SSP as a universal matrix for absolutely all brands in the portfolio – from budget city cars to luxury cruisers.
The new technological basis will serve to build key future models, among which the all-electric successor to the legend stands out – Volkswagen ID.Golf. Interestingly, its gasoline counterpart will continue to exist in parallel on the market for a certain period of time. The same base will also be used by Audi and Porsche engineers. However, in order to achieve the desired reduction in price, the Germans are also changing course with batteries – expensive nickel-manganese-cobalt (NMC) cells will gradually give way to significantly more affordable lithium-iron-phosphate (LFP) alternatives that are ideal for the mass consumer.
However, the real digital tornado comes in the form of software. Thanks to a completely new approach to programming, the Volkswagen Group expects to reduce the cost of electronics by a staggering 80% compared to current systems in the MEB. The cars will switch to the so-called “zonal” electronic architecture. In simple terms, instead of dozens of small and independent control units scattered throughout the cabin, the car will be controlled by several powerful central computers. This simplifies assembly, lightens wiring harnesses and allows for easy remote feature updates.
The first glimmer of this technological dawn will be seen in the affordable Volkswagen ID.1 city car, which is scheduled to launch in 2027. Although the big goal is to keep its price below £20,000, it will be the first to receive elements of the zone electronics. In more premium brands such as Audi, Porsche and the revived Scout off-roader brand, the system's capacity will be expanded with additional computing modules to control more complex extras and autonomous driving systems.
In parallel, Blum is starting a relentless fight against unnecessary manufacturing complexity. The boss frankly admitted that the concern has become entangled in an excessive number of options in the configurators. An example was the decision at Audi, where the steering wheel varieties have been brutally cut from an insane 150 options to just 5, which facilitates logistics without the customer feeling any shortage. The entire model range is being optimized so that the cost structure is profitable at a stable volume of around 9 million cars per year, avoiding the trap of excess and idle capacity.
Last but not least, Wolfsburg will bring its invaluable experience from the Asian market to Europe. In China, the Germans have managed to halve production costs in the last three years thanks to their close ties with local battery and electric motor suppliers, as well as through strategic partnerships with local players such as XPeng and SAIC. Now these ready-made and battle-tested solutions will be implemented on a global scale to restore the group's position in the face of aggressive competition.