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Volkswagen Autoeuropa in Palmela, Portugal, focuses on logistics efficiency as it transitions to the ID.Every1 electric vehicle. The plant is part of the Group's Zero Impact Factory initiative with a target of carbon neutrality by 2040.

It has invested €300 million in paint shop electrification and geothermal energy. From 2017 to 2025, 724 packaging modifications led to a 30% reduction in cardboard waste and a 47% reduction in plastic waste per vehicle, totaling over 523 tonnes of waste eliminated and €7 million in cost savings.

The site faces challenges in sourcing materials, particularly from China, and maintains a minimum four-week stock to mitigate risks from global supply chain disruptions. Despite geographical challenges, the plant achieves some of the lowest logistics costs among all Volkswagen plants in Europe.