Volkswagen Polo production ends in Europe to prep for smaller, more affordable EVs
After 40 years, Volkswagen is no longer building Polo models in Europe. VW has ended Polo production in Europe as it shifts focus to smaller, more affordable EVs.
VW Polo production ends in Europe after 40 years
Volkswagen has been building Polo models in Pamplona, Spain, since 1984. Over 8.4 million Polos have been built at the Pamplona plant as one of Europe’s top-selling cars.
According to the latest DataForce (via Automotive News) figures, Volkswagen’s Polo was Europe’s 8th top-selling small car, with over 90,100 models sold this year through August 2024.
However, Volkswagen is preparing to introduce a series of smaller, more affordable EVs, which will be built at the facility. The Pamplona plant is scheduled to begin producing two small electric SUVs in 2026.
The new electric SUVs will be powered by a modified version of Volkswagen’s MEB platform, underpinning its current ID series, including the ID.4.
We got our first look at the small SUV last year after Volkswagen unveiled the ID.2all concept. The ID.2all will sit below the ID.3 with starting prices under 25,000 euros ($27,500).
Smaller, more affordable EVs en route
CEO Thomas Shafer said the ID.2all previews “where we want to take the brand.” The electric SUV is expected to get up to 279 miles (450 km) WLTP driving range.
Volkswagen blended iconic design elements from legends like the Golf and Beetle with a modern upgrade to stand out in the electric era.
Head designer Andreas Mindt claims the ID.2 looks “even better” than the concept shown last year as design work on the production model wraps up. Mindt said the low-cost electric SUV “gives a preview of the new design language of Volkswagen.”
After revealing the interior for the first time last December, Mindt stated, “The future of Volkswagen interiors has arrived.”
Volkswagen claims the ID.2 will feature a generous storage volume of up to 47 cubic feet (1,330 liters). Mindt said it is unusual to find so much storage space in a small car.
One of the coolest interior features is the new rotary knob, which allows you to select from different driving modes inspired by the Golf and Beetle. By turning the knob, you can choose between “Classic,” which draws from the Beetle era, or “Vintage” modes, which will bring you back to the Golf era.
Last month, Volkswagen’s low-cost EV was spotted for the first time out testing ahead of its official debut.
Mindt also teased a slightly bigger ID.2all SUV model, which is expected to launch shortly after the ID.2 in 2026.
Although VW ended Polo production in Europe, the model will still be sold in the region. However, production has been moved to its Kariega, South Africa plant. Volkswagen will also continue building T-Cross and Taigo models in Spain, the company confirmed.
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Despite its small size, Volvo’s cheapest EV continued its dominant run last month in Europe. The Volvo EX30 was Europe’s second-best-selling EV, behind only the Tesla Model Y, as sales continued surging.
Volvo EX30 sales continue surging in Europe in August
According to new data from the European Automobile Manufacturers’ Association (ACEA), EV registration in the EU fell by 43.9% in August as the two biggest markets, Germany (-68.8%) and France (-33.1%), saw significant declines.
Despite this, Volvo was one of the bright spots, as overall vehicle sales climbed 36%. With 19,605 vehicles sold last month, Volvo topped Tesla and Fiat to become the fourteenth largest automaker in the EU, UK, and EFTA countries, according to Dataforce.
Volvo’s growth was largely thanks to the new EX30, which added 6,377 in sales to its total. The growth was enough to become Europe’s second best-selling EV, behind only Tesla’s Model Y.
The accomplishment is significant, given Volvo handed over the first EX30 models last December.
Volvo’s global sales rose 3% in August, with 52,944 cars sold. The EX30 was its fourth top-selling vehicle, with 8,346 units sold, behind the XC60 (14,723) and XC40/EX40, which had 10,668 combined sales.
Starting at around 36,000 euros ($40,000), the EX30 is one of Europe’s most affordable EVs. Although due to hit the market later than expected, the EX30 is scheduled to launch in the US next year, starting at $34,950.
The delay comes as the US announced a new 100% tariff on EVs imported from China, where the EX30 is currently built.
Volvo is fast-tracking production at its Ghent, Belgium plant to export EX30 models to the US, enabling it to bypass the additional tariffs.
Electrek’s Take
Will the Volvo EX30 have the same impact in the US? Starting at under $35,000, the small electric SUV will not only be one of the cheapest EVs in the US but also one of the most affordable vehicles (gas-powered or EV) on the market.
According to the latest data from Kelley Blue Book, the average transaction price (ATP) for a new vehicle in the US was $47,870 in August.
Volvo is also launching its flagship electric seven-seater, the EX90 (check out our review of the luxury 7-seat kid-hauler).
Although Volvo’s sales in the US and Canada were down 0.2% through the first eight months, Volvo expects new EVs in key segments to quickly recharge sales.
Source: Automotive News
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Chicago-based NanoGraf will build a $175 million factory to produce 2,500 tons of silicon anode material to support up to 1.5 million EVs per year.
NanoGraf’s new factory
The US Department of Energy (DOE) has awarded $60 million to the silicon anode battery company to help build its factory under the Bipartisan Infrastructure Law.
NanoGraf’s project is one of 25 selected across 14 states to receive a portion of the over $3 billion in grants that the DOE announced today. These grants aim to strengthen domestic production of advanced batteries and battery materials in the US.
NanoGraf will use the grant, in addition to its own capital, to retrofit an existing factory in Flint, Michigan. It will be one of the world’s largest silicon anode facilities, significantly boosting US efforts to onshore the battery supply chain. The company says its advanced silicon anode battery material enables stronger, lighter, and longer-lasting lithium-ion batteries.
The Flint factory is NanoGraf’s third battery material factory and increases the company’s total manufacturing footprint to over 414,000 square feet. NanoGraf currently produces silicon anode material for the US military out of two Chicago-based manufacturing facilities, including a new R&D facility at 455 N Ashland Avenue and its headquarters at 400 N Noble Street.
The project will create approximately 200 construction jobs through a project labor agreement with the North American Building Trades Union. Up to 150 new permanent jobs will be created for operations, and around 80% are expected to come directly from the local community.
NanoGraf has signed a neutrality agreement with the United Steelworkers and says it’s committed to partnering with them should a majority of employees wish to unionize.
Electrek’s Take
In November 2022, Connor Hund, chief operating officer at NanoGraf, and I discussed a $10 million Department of Defense contract that the company had secured.
Hund told me that the company’s 18-month contract with the DoD allowed it to scale up domestic production in a careful and deliberate way so that it could lay the groundwork for the next stage of supplying domestically produced batteries to the EV market by 2024.
NanoGraf doesn’t say when it intends to open the Flint factory, but it’s certainly moving toward the next-stage goal that it set in a timely fashion. A huge domestically made lithium-ion battery factory is a welcome thing.
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