Volkswagen holds out prospect of entry-level EV by 2027

BERLIN (Reuters) -Volkswagen on Thursday held out the prospect of launching an entry-level electric vehicle by 2027, with VW brand chief Thomas Schaefer saying the company would decide in coming weeks which model to move forward with.

Four project teams are currently working on proposals for the vehicle, which has the working title ID.1, Schaefer said at a group presentation, where a representative vehicle was on display. Slides from a presentation indicated the vehicle could be ready by 2027.

The company plans to launch 11 new electric vehicles from the Volkswagen brand over the next three years, including the ID.2 announced for 2026 at a price of around 25,000 euros and models developed jointly with Chinese manufacturer Xpeng for the Chinese market.

VW Group Chief Executive Oliver Blume said on Wednesday that a decision on an entry-level model for around 20,000 euros would be made this year. "We are working conceptually on a solution and are not ruling out partnerships in this area," he said.

The carmaker, which has embarked on a 10 billion euro cost-cutting drive at its namesake brand, also said on Thursday that closer cooperation led to an 80% increase in operating profit for its core mass-market brands last year.

The group including Volkswagen, Volkswagen Commercial Vehicles, Skoda and SEAT/CUPRA posted an operating profit of 7.3 billion euros ($7.99 billion), mainly due to higher unit sales.

"Through close cooperation between our brands, we are working more efficiently, becoming more competitive and boosting our innovativeness for our customers worldwide," said Schaefer.

Related effects from the closer cooperation should bolster results this year, said the German carmaker, which also expects more sales due to an improved supply of raw materials and components.

($1 = 0.9140 euros)

(Reporting by Christina AmannWriting by Miranda MurrayEditing by Madeline Chambers, Kirsten Donovan)