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Volkswagen unveils ID.CROSS, an affordable electric SUV

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CEO Blume: Challenges include competition, China price war

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Volkswagen ongoing cost cuts include job, capacity cuts

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headline, adds CEO comments in paragraphs 2, 4-5, context in

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MUNICH, Sept 7 (Reuters) - Volkswagen

unveiled a concept for a new small electric SUV on Sunday as

part of the automaker's push to offer affordable battery-powered

vehicles amid greater competition on cost and innovation, U.S.

tariffs and shifting consumer demand.

The ID.CROSS is part of a product offering that has seen the

Volkswagen group, Europe's largest carmaker, introduce around 60

models in 2024 and 2025, Chief Executive Blume said at a media

preview ahead of the Munich car show that begins on Tuesday.

The compact electric SUV, which will have its world

premiere in the summer of 2026, is expected to be priced between

28,000 euros and 30,000 euros ($32,780 and $35,121), targeting

less affluent clients keen on buying EVs.

"We've always faced major challenges," Blume said, citing

strong competition, declining demand in Europe, a price war in

China and trade tensions, most notably U.S. import tariffs that

have dealt a severe blow to the carmaker's Audi and Porsche

brands.

"But we didn't hold back," Blume said with regard to the

group's offering, which also includes the ID.Polo hatchback EV -

with a starting price of 25,000 euros - as well as the CUPRA

Raval and Skoda's Epiq SUV.

European automakers are up against stiff competition from

China in the quest to bring affordable EVs to the market.

Squeezed by falling profits in key market China and weak

auto demand in Europe, Volkswagen has also launched a major

cost-cutting programme that will see more than 35,000 jobs go,

along with painful capacity cuts at its German plants.

($1 = 0.8542 euros)