A Volkswagen ID.4 owner says the automaker and his local dealer are letting him down.
After buying the car, it’s sat in a service repair shop for over seven months.
The dealer claims that VW itself hasn’t supplied the tools needed to change the gearbox.
From an observer’s perspective, it’s clear that the Volkswagen ID.4 is far from perfect as it’s had several issues since its launch. At times, the problems are relatively trivial. However, some of them are more serious, such as when the doors open on their own because they can’t handle water on them. What we don’t often get is an inside look at life with such a car. Now, one man in Florida is telling his troubled story with an ID.4.
Josh Cowan is a die-hard Volkswagen fan. He’s owned three Jettas, a Tiguan, and an Atlas. His wife’s very first car was a Volkswagen. It made sense to him to get an ID.4 when it came time to buy a new car for his family. What he didn’t know was that he’d end up right back in a loaner Tiguan for over seven months.
Not long after taking delivery of his low-mileage but used ID.4 from Carmax, he noticed an airbag light on. He took it to the dealer and mentioned to them that he also heard a strange noise periodically. “There was a clunking sound that happened every time you kind of turned a corner and accelerated,” Cowan said to WFTV.
First, the dealer thought the issue was a motor mount. When that didn’t work, they told him that the ID.4 needed a new transmission. Now, over seven months later, the ID.4 is still sitting at the shop. What’s taking so long? According to the dealer, Volkswagen itself hasn’t supplied it with the tools it needs to swap the gearbox out.
“So, there it sits. Now it’s been seven and a half months. There are two additional recalls on that car that have happened in the meantime that they don’t have fixes for,” Cowan said. Interestingly, Volkswagen seems poised to wipe its hands of all liability as they offered the Cowans $3,000.
Josh believes that if he accepts it, he’ll release VW from future claims. With that in mind, Josh says “It’s frustrating, and we feel really let down by Volkswagen.” The only thing he can do at this point is wait on the dealer and the automaker to make things right.
The company’s supervisory board was pondering the possibility of closing two plants.
One of the plants employs 2,300 people and handles production of the Porsche Cayman, Boxster, and VW T-Roc Cabriolet.
VW and the IG Metall union continue to negotiate over how to resolve the situation.
For months, Volkswagen has been threatening to close factories in Germany as it hunts for ways to slash costs and sure up its finances. However, the company’s supervisory board is now pondering the possibility of keeping them open in news that’ll no doubt be welcomed by employees and local labor unions.
If VW closed plants in Germany, it would mark the first time in the company’s history that such drastic measures have been taken. The company is facing increased competition from new brands entering the European market, in particular Chinese automakers, and according to VW brand boss Thomas Schäfer, the situation “cannot be resolved through simply cost-cutting measures.” For the past three months, unions and VW have been at loggerheads about what measures are necessary to slash costs.
According to German publication Manager Magazin, VW board members had been looking to end production at the firm’s Dresden plant, which currently employs 300 people. They have also investigated selling the Osnabrueck factory, which has a 2,300-strong workforce. However, unnamed sources now claim the board favors not closing these plants and has not yet lined up a potential buyer for the Osnabrueck site.
The future of the plants is not guaranteed at this stage as there’s still said to be disagreement among some board members. Reuters understands that the Piech and Porsche families favor more aggressive cost-cutting measures.
The Osnabrueck factory currently handles production of the Porsche Cayman, Boxster, and T-Roc Cabrio. While it has an annual capacity of up to 100,000 units, just 28,000 vehicles were manufactured there last year. Production of the T-Roc Cabriolet is also scheduled to end next year, and Porsche is shifting production of the Cayman and Boxster to its site in Zuffenhausen. VW’s Dresden site currently builds the ID.3.
At the start of December, almost 100,000 VW workers across Germany walked off their jobs to protest the extreme cost-cutting measures proposed. The IG Metall union has offered to forgo bonuses for 2025 and 2026 and has also proposed using money from wage increases to finance temporary reduced working hours during times of overcapacity. It says these measures could deliver €1.5 billion ($1.6 billion) in cost savings.
Volkswagen dealers have embraced ID. Buzz markups and one is seeking $35,000 over MSRP.
Other dealers are asking $5,000 to $10,000 over sticker, so it pays to shop around.
The ID. Buzz starts at $59,995 and has 282 hp as well as 234 miles of range.
The dam has burst on ID. Buzz markups as numerous dealers are now advertising the van over MSRP. The most egregious is Volkswagen San Bernardino, which has two 1st Editions listed for $107,668. Both carry a MSRP of $72,668 and that means they have a $35,000 markup.
That’s a ridiculous number as the ID. Buzz starts at $59,995. This means the markup is 58% of the price of the van itself.
Unfortunately, Volkswagen San Bernardino isn’t the only rotten apple as Maryland’s King Volkswagen has added a $10,000 markup to their 1st Edition. This means they’re looking to get $81,895 instead of the MSRP of $71,895.
Illinois’ Larry Roesch Volkswagen has a slightly more modest $5,000 markup, which boosts the price of their van to $77,300. It’s a similar story at Emich Volkswagen of Boulder and Denver, which appears to have sold several vans with $5,000 markups.
One of the more interesting models up for sale is a $76,295 ID. Buzz Pro S from Napleton’s Auto Park of Urbana, Illinois. While the Pro S starts at $59,995 this one features a Mystery Machine wrap from Scooby Doo. Is it worth the price of admission? Probably not, but at least you’re getting something unique for the elevated price tag.
Volkswagen of America began ID. Buzz deliveries last month and was initially able to keep a lid on markups – or at least blatantly advertised ones. Now that more dealers have vans in stock, markups are a common sight. This is interesting to note as Volkswagen warned against them.
Speaking of which, greedy dealers are helping to prove Volkswagen’s case for Scout’s direct to consumer model. Dealers were up in arms about this, but the massive markups show they can’t be trusted.
Volkswagen is shifting its design focus to better compete with rivals like Tesla’s Model Y.
The updated ID.3 and ID.4 will adopt a fresh design inspired by the ID.2 concept.
The company is also responding to criticism by re-introducing buttons to its interiors.
Volkswagen is readying a raft of improvements for the ID.3 and ID.4 that won’t just overhaul their designs, but also introduce new interiors and improvements to their underpinnings.
While the ID.3 and ID.4 were among the first truly compelling EVs from the VW Group in their respective segments, sales haven’t exactly met expectations. When the ID.3 launched in 2019, some believed it could challenge the dominance of the Tesla Model Y. Evidently, that didn’t happen, and part of the reason is likely the design language of VW’s current ID models. Fortunately, things are set to change, with design inspiration now coming from the upcoming ID.2, which was previewed by a concept last year.
A New Look, A New Direction
During a recent interview with Auto Express, Volkswagen’s development boss, Kai Grünitz, confirmed that both the ID.3 and ID.4 will benefit from the brand’s new design language. “We will bring a re-skin for the ID.4 and ID.3, with a completely new design language going back to where we originally came from, from a design perspective, and return to what Volkswagen is known for,” he said.
This means ditching the somewhat ambiguous styling of current ID models in favor of a more coherent and recognizable aesthetic. Leading the charge is VW design head Andy Mindt, whose new approach embraces a cleaner, more defined two-box silhouette that should help give the ID. models a clearer identity.
In addition to the new looks, Grünitz hinted at more practical improvements, too. “We also have a lot of improvements in terms of battery costs and performance, we will also bring new features and driver assistance functions,” he added. “So there will be a huge improvement, both in terms of the cost for us, but also benefit for the customers.”
Translation: better range, improved performance, and a host of new tech aimed at making the ID.3 and ID.4 more attractive to buyers
Interior Overhaul: Goodbye, Cheap Plastics
If you’ve ever spent time in an ID.3 or ID.4, you’ll know the interiors can feel a bit… cold, to put it mildly. VW seems to have taken the hint. Customers will be pleased to know that VW is working to make its cabins nicer. The new interior design direction was also previewed by the ID.2all concept and added more physical buttons and switches. One of the key features of the concept was its row of physical switches for the climate control, neatly positioned below the central infotainment display.
The British magazine also mentioned that VW will make several quality improvements to the cabins of the ID.3 and ID.4. In September, Mindt revealed that the brand plans to ditch cheap plastic materials and will instead use more fabrics.
When Will the New ID.3 and ID.4 Arrive?
As for when you can expect these refreshed ID. models to hit showrooms, Volkswagen is staying tight-lipped. The cars might not land until 2026, but given the current pace of the EV market, that’s probably just the right amount of time to make these updates matter.
Rivian is involved in the development of VW Group’s next-generation EVs.
VW will use Rivian’s electric architecture for future software-defined vehicles.
The fully electric VW Golf Mk9 will be one of them, set to arrive in 2029.
It seems Volkswagen’s $5.8 billion joint venture with Rivian has some ambitious projects in the works, and by “ambitious,” we mean important enough to shake up VW’s EV strategy for the next decade. The electric vehicle disruptor will assist VW Group in developing its next-gen EVs, including the highly anticipated Golf Mk9.
Rivian is developing a next-generation electrical architecture tailored for software-defined vehicles. The first VW Group brands set to adopt this cutting-edge system will be Porsche and Audi, with implementation beginning in 2027. However, Rivian’s own R2 model could debut the tech even earlier if it stays on track for its planned 2026 launch. Still, the spotlight is firmly on the next-generation VW Golf, which has been confirmed for 2029 with a fully electric powertrain.
Speaking to the media, VW CEO Thomas Schafer shed more light on the company’s future plans, revealing that the Golf was specifically chosen to debut the new software-defined vehicle platform.
“We decided on how to do the software-defined vehicle. It will happen with Rivian, the joint venture, where we put the new electric electronics architecture together,” said Schafer. “But we have also decided that we want to start this journey with a more iconic product. So we’ll start with the Golf.”
A New Kind Of Golf Is Coming
As reported by Auto News, Shafer confirmed that the all-electric Golf “will be shown in 2029,” emphasizing that it will be a “real volume product.” The hatchback is set to ride on VW’s new Scalable Systems Platform (SSP), which promises improved efficiency and flexibility for future EVs.
Interestingly, the Golf Mk9 could serve as a de facto replacement for the MEB-based ID.3, which is slated for a second facelift in 2026. However, the Golf Mk9 won’t fully eclipse its gas-powered sibling, as the ICE-driven Mk8 is expected to remain in production until 2035, a reminder that VW is hedging its bets as it transitions into the EV era.
What About The Project Trinity?
While VW is pushing forward with the electric Golf, its high-profile Project Trinity flagship EV has hit the brakes, at least temporarily. Originally planned as the brand’s first software-defined vehicle, the Trinity has been delayed amid shifting priorities. “We just switched a little bit, moved it out a little bit, not because we don’t see it as a huge priority, but Trinity was never designed as a volume vehicle,” Schafer admitted.
Schafer didn’t provide specific dates, but recent reports indicate that the launch of the Trinity EV has been pushed back from 2026 to late 2032. Initially, VW had planned to construct a brand-new factory dedicated to this Tesla-rivaling flagship EV. However, the company reversed course last year, choosing instead to modernize its existing plant in Zwickau. According to Schafer, this decision has proven to be a smart move in light of the economic and supply chain challenges the company is currently facing.
Navigating Economic Turbulence
The VW Group is already feeling the pinch, with factory closures and cost-cutting measures looming large. Audi’s Brussels plant is set to shut down in February, and the company has proposed a 10% wage reduction alongside the elimination of bonuses. Adding to the tension, mass layoffs remain a possibility, an option that has provoked fierce resistance from the workers’ union, which has threatened a strike “not seen for decades” if these plans move forward.
Amid this unrest, VW’s best hope lies in delivering products that reignite consumer excitement and prove the brand can still compete in an increasingly electrified market.
Volkswagen and China’s SAIC have signed a deal extending their partnership to 2040.
The pair announced their recommitment to the joint venture 40 years after teaming up.
SAIC Volkswagen plans to introduce 18 EVs and PHEVs to the Chinese market by 2030.
These days almost every major automaker has a tie-up with a partner firm in China, but it was Volkswagen that blazed the trail, joining forces with domestic company SAIC four decades ago. And this week, on the 40th anniversary of that original deal, the pair have signed up to extend their joint venture to 2040.
Controversial Xinjiang Plant Sale
At the same time, VW announced the sale of its Urumqi car plant in Xinjiang province, a region that has been under intense scrutiny due to alleged human rights violations. Owned by the VW-SAIC joint venture, the duo finally agreed to sell their controversial Xinjiang plant to Shanghai Motor Vehicle Inspection Certification (SMVIC), Reuters says.
The manufacturing plant gained notoriety because the region has been the location of human rights abuses of the Uyghur people, a predominantly Muslim ethnic group in Xinjiang, though VW’s own audit claimed to have found no evidence of forced labor at the plant. It’s worth noting that the factory, which opened in 2013, has lost its relevance in recent years, now employing just 200 people for final checks and deliveries. Once capable of producing 50,000 cars annually, it hasn’t turned out a single vehicle since 2019.
Extended Agreement and Future Plans
The current agreement between VW and SAIC doesn’t expire until 2030,but the automakers opted to extend it now due to the “multi-year planning cycles of new products,” and boy do they have a ton of those new products in the pipes.
SAIC Volkswagen is on target to introduce 18 new models, 15 of them specifically for the Chinese market. Six of the 18 are EVs, with two of those due to arrive in 2026 using the newly locally developed “Compact Main Platform” (CMP) and zonal electric architecture.
Chinese customers have switched on to EVs at a much faster rate than their counterparts in Europe and North America, but that doesn’t mean SAIC Volkswagen is going to ignore combustion tech. Arriving in 2026, the same year as the two EVs, are three plug-in hybrid models and two range-extender EVs.
“China is a driver of innovation for autonomous driving and electric mobility,” said Ralf Brandstätter, VW’s top man in the country. “With the new agreement, we are intensifying our integration into the Chinese ecosystem and consistently leveraging local innovation strength. This also creates a strategic competitive advantage for the Volkswagen Group worldwide.”
Sales Struggles in China
VW, like many western Automakers, has been struggling recently with falling sales in China. Having previously lapped up offerings from brands like VW, Porsche, BMW and Mercedes, Chinese buyers are increasingly choosing cars from rapidly improving domestic brands selling cars at prices European companies struggle to match. Before the pandemic German brands accounted for 25 percent of cars sold in China, but now they make up only 15 percent, Bloomberg reported last month.
BYD has been named and shamed in a study looking at human rights violations in automotive supply chains.
Amnesty International’s Recharge for Rights report also claims Mitsubishi and Hyundai could do more to protect indirect workers.
BYD refused to disclose where it gets its cobalt from, with Mercedes showing the most transparency.
BYD makes more EVs than anyone, and it makes them for less money than most Western automakers can comprehend. But there is a cost, and it’s being paid by the workers in its supply chains, according to a new report investigating human rights risks in the EV industry.
Amnesty International’s Recharge for Rights study ranked 13 automakers according to how they address human rights risks in their mineral supply chains. BYD came bottom with a score of just 11 out of a potential 90 points, with Mitsubishi not far behind on 13 points.
Hyundai (21), Geely and Nissan (22 apiece) came out looking like bad guys but Tesla (49) and top-rated Mercedes (51) performed far better. Not that even Benz’s score was enough to please the Amnesty investigators, who suggest that only a total of 68 points or more shows an adequate commitment to human rights issues.
Although EVs don’t produce tailpipe emissions, their batteries need huge quantities of minerals like lithium, nickel, and cobalt. And while many of us are aware of the environmental damage caused by mining lithium, Amnesty International says the cobalt mining industry is ripe for the abuse of workers, some of whom in countries like the Democratic Republic of Congo, which generates 25 percent of the world’s supply, are children.
BYD was marked down for refusing to reveal the name of the smelter, refiner, and mine that supply its minerals, but Geely, Hyundai, Mitsubishi, and GM were all guilty of a lack of transparency. In contrast, the best-rated brands were able to provide supply-chain mapping.
Human rights score
Automaker
Score out of 90
Mercedes
51
Tesla
49
Stellantis
42
VW
41
BMW
41
Ford
41
GM
32
Renault
27
Nissan
22
Geely
22
Hyundai
21
Mitsubishi
13
BYD
11
SWIPE
“As the global transition to electric vehicles gains momentum, drives global competition and allows for huge profit, Amnesty International is calling on all car makers to improve their human rights due diligence efforts and bring them in line with international human rights standards,” said the organization’s Agnès Callamard.
The need for automakers to prove the origins of their batteries’ minerals to be eligible for EV credits has improved transparency, Wired notes. And there are steep fines (and market access restrictions) awaiting companies who flout rules governing supply chain welfare contained in the Corporate Sustainability Due Diligence Directive that came into force in Europe this summer.
But Callamard believes there’s more to be done.
“Those lagging behind need to work harder and faster to show that human rights isn’t just a fluff phrase, but an issue they take seriously,” she says. “It’s time to shift gears and ensure electric vehicles don’t leave behind a legacy of human rights abuses – instead, the industry must drive a just energy future that leaves no one behind.”
PROS ›› Comfort refinement, long WLTP range, roomy, looks less boring than sedan CONS ›› Other EVs look more exciting, many are more fun to drive, fiddly minor controls
VW’s ID electric portfolio started with just one car, the ID.3 launched back in 2020. Four years later, there’s an entire family of ID models ranging from crossovers and retro minivans to this, the ID.7, all based on the same MEB platform.
The ID.7 is on sale in Europe now, but it’s still missing from showrooms in Australia, and earlier this year VW North America postponed the model’s US launch with no new date given for its arrival. The sedan was scheduled to go on sale before the end of 2024 for the 2025 model year, but worries about the cooling EV market forced a rethink.
We grabbed the keys to the new wagon variant to see whether those who can buy the ID.7 should, and those that can’t ought to be pestering VW to make it available.
QUICK FACTS
Model
2025 VW ID.7 Tourer Pro S Match
Dimensions
4,961 mm (195.3 in) L x 1,862 mm (73.3 in) W x 1,538 mm (60.6 in) H
2,966 mm (116.8 in) Wheelbase
Powertrain
Single electric motor, 86 kWh battery, 1-speed transmission, RWD
Output
282 HP / 402 lb-ft
Top Speed
112 mph / 180 km/h*
0-62 MPH
6.7 seconds (0-100 km/h)*
EV Range
424 Miles (WLTP claimed / 682 km)*
Charging Speeds
10-80% in 26 mins with DC 200 kW; 0-100% in 9 hrs with 11 kW AC*
Cargo Capacity
16.5 cu-ft / 605 liters
Curb Weight
4,788 lbs / 2,172 kg
Starting Price / As Tested
£55,260 / £59,890 ($69,330 / $75,139)
*Manufacturer
SWIPE
Overview and what’s new
The ID.7 is VW’s answer to the Kia EV6 and Tesla Model 3, but unlike those EVs, it offers the choice of both sedan (technically a hatch) and wagon-bodied Tourer shapes. The two variants ride on the same 116.8-inch (2,966 mm) wheelbase which is huge for the class – 2.6 inches (66 mm) longer than the Kia’s and 3.6 inches (91 mm) bigger than the Tesla’s.
But the Tourer’s longer roofline and more upright rear window gives it more cargo space than the sedan and arguably a touch more style. Neither version is going to make you swoon, mind. They’re like ID.4 and ID.5 SUV and crossover given a 1950s custom roof chop and sectioned body job to bring them lower to the ground. Not ugly, just lacking in the pizazz of cars like the EV6, as if VW wimped out halfway through the design process.
In the UK, the ID.7 comes in three trims: £52,240 Match, £56,140 Match Pro S Match and £62,670 GTX. The first two are the almost identical except for their battery sizes, but the GTX sets itself apart with an extra motor and all-wheel drive.
We drove the mid-spec ID.7 Match Pro S that gets the same 282 hp (286 PS), 402 lb-ft (545 Nm) motor on the rear axle as the entry-level car, but swaps out the 77 kWh battery for an 86 kWh unit. Many buyers might not see the need for the upgrade because the base car is fractionally quicker (6.6 seconds to 62 mph / 100 km/h versus 6.7 seconds) and is rated at 373 miles ( 600 km) of electric range.
But if you are planning on regularly taking some long trips, the bigger battery in the Pro S bumps the range to 424 miles (682 km). VW’s early ID models made do with a fairly slow 125 kW max charge rate, and even the base ID.7 is limited to 175 kW, but the ID.7 Pro S can handle 200 kW fills, which means a 10-80 percent top-up takes 26 minutes. A Kia EV6 will do the same almost 10 minutes quicker, but then the ID.7 can go much further between charges, meaning you don’t need to add as much energy to cover the same distance.
Whichever ID.7 you go for you have to pay extra (£1,050 in the UK) for a heat pump, though the range is so good you might decide its not worth the expense, especially if you live in an area with mild weather. If you live in a cold region, we wouldn’t be surprised if you got an extra 30 miles (50 km) of range with the pump fitted.
How does it drive?
We often think of EVs as cars for short trips, but the ID.7 would make a fantastic road-trip EV. Yes, it’s got a long range, but just as importantly it’s got the refinement and comfort to make you want to put that 424-mile range claim to the test.
For a start, it’s incredibly quiet. Wind noise is lower than in BMW’s much more expensive i5, tire road is subdued and the rear-mounted motor keeps schtum even when pressed. And then there’s the way it rides. The ID.7 smooths away all but the worst lumps and bumps, preventing imperfections in the road surface from getting through to your butt, your ears or your hands.
Admittedly, our press car came with DCC adaptive dampers and acoustic glass (bundled into a £2,100 Exterior Pack along with variable ratio steering and illuminated VW roundel), so we can’t say how good a base car feels, but certainly with the trick shocks and glass the ID.7’s a great cruiser.
And that’s arguably what matters for a car like this. But if what matters to you is having fun when the traffic ahead disappears, other EVs do it better. The ID.7 is competent, but never entertaining, its steering too remote and its weirdly long brake pedal action lacking the initial bite you want when hustling a car. You also only get two different levels of regenerative braking to choose from and no one-pedal function, though there are four driving modes.
The single 282 hp motor can get you to 62 mph (100 km/h) in under 7 seconds, which isn’t exactly slow, but the 320 hp (324 PS) Kia EV6 you can buy for the same money only needs 5.3 seconds. If you want that kind of go out of the ID.7 you’ll have to upgrade to the 335 hp (340 PS) bi-motor GTX that gets you to 62 mph in 5.5 seconds.
How’s the interior?
VW took some heat for the original ID.3’s cheap-feeling interior. Was this really the same company that gave us the game-changing MKIV Golf with its damped grab handles? But there are no quality disappointments with the materials in the ID.7’s cabin. Or comfort complaints. The front seats aren’t much to look at but they feel great and that’s before you’ve switched on the standard massage function.
You also get a much better touchscreen than was fitted to earlier ID cars. At 15 inches its bigger so is easier to see and use, and the heater sliders are now illuminated, but we’d prefer if both they and the volume control were old-fashioned rotary dials. Even the direction of the airflow has to be controlled electronically. The ID.7 is also stuck with nasty capacitive steering wheel buttons, whereas the Mk8.5 Golf (but not the R, strangely) have reverted to traditional buttons.
Photos Chris Chilton/Carscoops
What about space?
We’ve already mentioned the ID.7’s unusually long wheelbase, so it won’t come as much of a surprise to learn that this VW feels enormous inside with ample space for four adults. Sure, an SUV will provide more headroom, but the ID.7 never feels lacking in that respect and it has the kind of rear legroom that only an NBA star could find fault with.
And that rear legroom doesn’t come at the expense of cargo space. The ID.7 sedan offers 532 liters (18.8 cu-ft) of space that’s accessible via a sloping hatchback tail and is more than you get in rivals like the Tesla Model 3 (a true sedan). The Tourer’s wagon body boosts that to 605 liters (21.4 cu-ft), or a gigantic 1,948 liters (68.8 cu-ft) when the non-sliding rear seats are folded down.
That compares favorably with the 543-1,575 liters (19-56 cu-ft) offered by VW’s own ID.4 SUV and the 570-1,700 (20-60) void in the back of BMW’s pricier i5 Touring. See what we mean? The ID.7 Tourer really is road-trip-ready. The only negative is that there’s no frunk for storing charging cables – even on this model, which has no electric motor up front.
Verdict
The ID.7 isn’t knockout exciting to look at or to drive. But it is a great EV, and driving it six months after getting behind the wheel of the sedan makes me think the ID.7 deserves a bit more attention than it’s been getting. It’s comfortable, refined, roomy, and in Tourer guise has a spacious cargo area. If you’re not bothered about record-breaking 0-60 times and hot hatch-style handling, and can live with the still slightly annoying touchscreen interface, the ID.7 has a ton going for it.
We happen to think the Tourer wagon looks better than the sedan, too. So it’s a shame that if the ID.7 does finally make it to the US it’ll probably only be in fastback guise. But if you’re in the UK or Europe, do yourself a favor and take a look at what the ID.7 had to offer before you spend £15k more on a BMW i5 Touring.
A group of leading automakers is urging the incoming Trump administration to retain tax credits for electric cars.
Ford, GM, Stellantis, Toyota, VW and others say they are worried about the threat posed by subsidized EVs from China.
The companies also said they wanted to fast-track self-driving cars and scrap the 2029 auto-emergency braking mandate.
Automakers in the US have joined forces to ask Donald Trump not to scrap EV tax credits when he takes office next January. Volkswagen, GM, Toyota and other companies have invested tens of billions in developing electric vehicles and adapting plants to build them, and are worried they’ll be rendered uncompetitive if the incoming Republican government axes the sweetener.
Writing to Trump in a November 12 letter that has only recently come to light, the Alliance for Automotive Innovation argued that the incentives made available via President Biden’s Inflation Reduction Act helped ensure America’s auto industry was “globally competitive” at a time when automakers are increasingly worried about the threat posed by their Chinese rivals.
But in the same letter the automakers also expressed their concern about “federal and state emissions regulations (particularly in California and affiliated states) that are out-of-step with current auto market realities and increase costs for consumers,” Reuters reports.
Biden’s team introduced tough tailpipe rules that get increasingly tighter the closer we get to 2035, the date California wants to ban the sale of combustion cars, a move that will be echoed in other states as well. But the automakers say this can only be achieved by selling more EVs, despite dealers finding that most customers would still rather have a combustion car or a hybrid.
Given Trump’s known stance on green matters – he previously rolled back President Obama’s emissions regulations, and his team has vowed to attack Biden’s rules – it seems entirely possible that automakers will be given more time to clean up their cars’ CO2 outputs. However, Politico reports that Trump probably won’t be able to claw back the $7.5 billion already earmarked for charging infrastructure projects because the funds have been committed.
The automakers also urged Trump to make legislative changes that would help speed up the development and rollout of self-driving cars. But when it came to automatic emergency braking, which the Democrats have insisted must be mandatory (and meet a tough universal standard) from 2029, the car companies asked for more time.
A salesman told a customer they’d need to pay “between $10k–20k over sticker.”
Fortunately, most dealerships appear to be honoring the ID. Buzz’s original MSRP.
Surprisingly, some dealerships are even offering discounts on the all-electric van.
When we first heard that Volkswagen would limit availability of the new ID. Buzz to just one or two units per dealer at launch in the States—gradually increasing allocation in 2025—it didn’t take a crystal ball to predict that a few stealerships might see dollar signs. While many seem to be playing nice for now, there are always those bad apples who just can’t resist squeezing a little extra juice out of a supply pinch.
At least one VW dealership in the U.S. is testing the waters by slapping a hefty premium on the ID.Buzz 1st Edition, with reports of markups reaching as high as $20,000. Others appear to be adding more modest premiums, but the pattern is still enough to draw some attention.
The $20K Sticker Shock
A Redditor recently shared a screenshot of a text exchange with a VW salesperson named “Mike.” While the dealership’s location wasn’t disclosed, the interaction painted a clear picture of pricing antics. In the exchange, Mike provided an image of the ID. Buzz 1st Edition’s window sticker, confirming it as a single-motor, rear-wheel-drive model with a base MSRP of $65,495. Add in $1,500 for destination fees, a charging cable, a roadside assistance kit, and an auto-dimming rearview mirror, and the total climbs to $68,083. But that wasn’t the end of it.
The salesman went on to state that the dealership was asking “somewhere between $10k–20k over sticker” for the electric van. The customer pushed back, replying, “Volkswagen specifically stated that that’s not allowed.” Mike’s response? A curt “Thank you for your time,” effectively ending the conversation.
The exchange is a stark reminder of how some dealerships try to take advantage of the hype over a new model and how desperate they often are to maximize profits, even if it means going against the policies of car manufacturers. It’s not the first time a vehicle launch has been met with such tactics, and unfortunately, it won’t be the last.
This isn’t the only ID.Buzz 1st Edition hit with a markup. Emich VW in Denver, Colorado, is selling a 2025 model with all-wheel drive for $77,300, a $5,000 markup over its $72,300 MSRP. However, there’s also encouraging news for buyers willing to shop around.
Northampton Volkswagen in Massachusetts is selling an ID.Buzz 1st Edition with all-wheel drive for $69,493, representing a $2,934 discount from its MSRP. Portsmouth Volkswagen in Greenland, New Hampshire, also has one in stock with an asking price of $70,295, a $2,452 discount.
Shop Smart
The disparity in pricing for the ID. Buzz highlights the wild variations that can occur during a high-profile vehicle launch. While some dealerships can’t resist tacking on premiums, others are sticking to MSRP—or even offering discounts. For buyers, the key takeaway is clear: shop around, compare prices, and don’t be afraid to walk away and wait if needed. With supply set to improve in 2025, patience might just save you thousands.
VW’s fully electric offerings will receive a visual makeover, starting in 2026.
The 2026 VW ID.2 hatchback will serve as a template for the upcoming facelifts.
The new looks will be combined with major upgrades to the MEB architecture.
Volkswagen is gearing up for a sweeping redesign of its electric ID lineup, accompanied by substantial upgrades to its MEB architecture. The refreshed range is set to roll out in 2026, with Volkswagen’s R&D chief describing the overhaul as “a much bigger change than expected.”
The new design philosophy will draw inspiration from the production version of the VW ID.2all concept, expected to debut in late 2025 or early 2026. This compact yet forward-thinking model will serve as the aesthetic blueprint for VW’s electrified future.
Rooted in Heritage, Focused on the Future
Kai Grünitz, Volkswagen Brand Board Member for Technical Development, shared fresh insights on the redesign during an interview with Autocar at the Los Angeles Auto Show. According to Grünitz, the revamped design direction is “going back to where we came from”, adding that it is closer “to what Volkswagen stands for.”
While he didn’t specify which ID models will be updated first or the precise timeline for the rollout, industry reports suggest that VW’s entire electric lineup will be reimagined. The ID.3 hatchback and ID.4/ID.5 SUVs, being among the earliest MEB-based models, are likely at the front of the queue for facelifts.
Meanwhile, the newer ID.7 sedan may follow suit, though the retro-cool ID.Buzz van might escape major exterior revisions. In typical VW fashion, the changes aim to refine rather than reinvent the lineup’s core appeal.
MEB Evolution
Beyond styling, the updates will deliver technical enhancements, including improved performance, lower battery costs, and “new functionality.” Grünitz hinted that these advancements will extend the MEB platform’s lifecycle until the next-gen SSP (Scalable Systems Platform) takes over, covering “everything from city cars to high-performance supercars”.
Volkswagen is clearly playing the long game with SSP, backed by its recent partnership with Rivian. Grünitz was quick to praise the US-based EV maker, describing it as “much leaner and faster than traditional OEMs” and comparable to the nimbleness of Chinese automakers. He also commended Rivian’s “best-in-class” OTA (over-the-air) software updates—a capability VW intends to adopt for its own electric arsenal.
ID.2 To Spawn Electric SUV and Hot Hatch
The next step for VW is to show an ID.2-based SUV concept at the 2025 Munich Motor Show. This study will be a preview for the second production EV to ride on the MEB Entry platform, following the ID.2 hatchback.
Enthusiasts have even more to look forward to: the ID.2 will evolve into the first-ever fully electric GTI. As previewed by the ID.GTI Concept in 2023, this hot hatch is set to debut in 2026, embodying the spirit of the Golf GTI. Grünitz teased that the model will blend nostalgia with innovation, delivering surprises that should resonate with VW loyalists and newcomers alike.
VW taps former Rivian and Porsche exec to strengthen its North American presence.
Kjell Gruner joins VW Group of America as it invests $5.8 billion into new EV platforms.
This latest leadership shift aligns with its long-term plan for EV advancements in 2027.
Just days after Volkswagen and Rivian announced the finalization of their joint venture to co-develop a next-generation electrical architecture and software, another major shift has surfaced. Kjell Gruner, one of Rivian’s former top executives, is set to become the new chief executive of Volkswagen Group of America.
That executive is Kjell Gruner, who joins Volkswagen after serving as chief commercial officer and president of Business Growth at Rivian. Gruner took on the role at Rivian in September 2023 but resigned in July 2024, after just 10 months. He is set to become the new head of Volkswagen Group of America on December 12, succeeding Pablo Di Si, who is stepping down.
Until Gruner officially takes charge, Gerrit Spengler, the current chief human resources officer for Volkswagen Group of America, will act as interim CEO.
A Familiar Name in the Industry
VW will no doubt hope that Gruner’s expertise in the US market will help it broaden its reach across the region. Through the first months of this year, VW sold 769,000 vehicles in North America, a 7% increase from the previous year.
Gruner brings extensive experience in both the US and German automotive markets. While his tenure at Rivian was brief, it’s hardly his first time in a high-profile role. His career began as a consultant before moving to Porsche in the early 2000s. In 2004, he joined DaimlerChrysler, where he led strategy for Mercedes-Benz Cars. By 2010, Gruner returned to Porsche, this time as the global chief marketing officer. In 2020, he ascended to president and CEO of Porsche Cars North America, a role he held until his transition to Rivian in 2023.
“Kjell Gruner is an absolute expert for the US market. He has over 25 years of experience in the automotive industry and extensive know-how in exploiting and expediting growth opportunities in North America,” VW AG group board member for human resources Gunnar Killian said. “Volkswagen AG is indebted to his predecessor, Pablo Di Si. His outstanding commitment was of central importance in realigning our business in South America. He subsequently laid the foundation for the positive development of our North American strategy.”
A $5.8 Billion Bet on Rivian Tech
Gruner’s appointment comes as VW doubles down on its collaboration with Rivian. The automaker has committed a significant $5.8 billion investment into co-developing a new electrical architecture based on Rivian’s systems. The partnership’s first fruits will debut in 2027 with a VW-branded vehicle. Afterward, the software stack will roll out across models from Audi, Porsche, Scout, and others under the Volkswagen Group umbrella.
VW Group announced the start of the GenFarm Project in Rwanda, Africa.
The company will be renting e-tractors and e-scooters to locals.
The vehicles will be charged using renewable energy from solar panels.
Volkswagen might be navigating choppy waters lately, but that hasn’t stalled its knack for exploring some interesting side projects. One standout example is the GenFarm Project in Africa, a fresh initiative featuring VW-branded e-tractors and e-scooters offered as rentals. It’s not every day that you see a carmaker best known for Golfs and Passats moonlighting as a supplier of farm equipment.
The company recently announced that the GenFarm Project has entered its pilot phase. Its goal is to bring modern, sustainable farming technology to rural areas in Africa, an idea that sounds more Silicon Valley than Wolfsburg. Still, there’s merit to the ambition.
At the heart of the initiative are several fully electric tractors supplied by VW’s Innovation Center Europe. These machines are being marketed as “reliable, sustainable, and environmentally friendly” alternatives to traditional diesel-powered equipment. Why go electric in a region where infrastructure can be patchy? According to VW, the high cost of fuel in Africa made EVs the more logical choice.
Under the hood—or rather, under the seat—the electric tractors produce a modest 27 hp (20 kW) and draw energy from a 32 kWh battery. Charging takes place at VW’s facilities using renewable energy from solar panels, and the use of swappable batteries is a clever touch, designed to minimize downtime. The company is betting that this approach will address the two biggest challenges for rural EVs: access to electricity and the need for continuous operation.
Dr. Nikolai Ardey, Managing Director of Volkswagen Group Innovation, stated: “Farmers can book an e-tractor including a trained driver for affordable sustainable farming. The unique selling point of the project is the use of the battery swap system. In this way, the battery becomes part of the hub’s energy infrastructure as well as energy storage for the tractor”.
The program isn’t just about tractors. It also incorporates e-scooters, which VW says will provide “mobility services for the transportation of goods and people.”
VW’s operational base for the GenFarm Project is located in Gashora, Rwanda, about 60 kilometers (37 miles) from Kigali. Known as the Empowerment Hub (or e-Hub), this facility will feature photovoltaic power systems and energy storage infrastructure, forming the backbone of the project’s renewable energy supply. The hub is expected to be fully functional by the first half of 2025.
The origins of the GenFarm Project trace back to 2021 when VW Group’s then-CEO, Herbert Diess, got behind the wheel of the first electric tractor prototype. Since then, the initiative has gained traction through partnerships and government backing. In 2023, the Government of Rwanda provided land for the project’s operations, and support soon followed from the Rwanda Institute for Conservation Agriculture (RICA) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), a development agency representing the German government.
According to VW, agriculture accounts for 25 percent of Rwanda’s Gross Domestic Product and has long played a “pivotal” role in supporting the livelihoods of its population. By introducing electric solutions, the GenFarm Project hopes to modernize the sector and reduce its environmental impact, all while empowering local communities.
Yesterday we celebrated the launch of the GenFarm project along with our @VWGroup & @VWRWanda colleagues! This innovative farming pilot will be making use of e-tractors as part of a holistic ecosystem that services rural areas in Africa. Learn more – https://t.co/ibv0Mp5jqb. pic.twitter.com/CUqjc3oxjq
VW spices up the looks of the ID.Buzz Cargo with a bunch of optional accessories.
Options include a bodykit, 20-inch wheels, black badges, and glass-look panels.
Most of the options are also available for the passenger version of the ID.Buzz.
VW recently launched the GTX performance flagship trim of the ID.Buzz, but what about buyers of the Cargo version who want something sportier? The answer lies in an optional accessory package that dresses the LCV with a cool bodykit while dropping the bland panel-val looks with the help of fake windows.
At first, we thought that the pictured van was the work of an aftermarket company, but it turns out it is an option offered by VW Netherlands. The “glass-look panels” make the ID.Buzz Cargo look like the passenger version of the ID.Buzz with tinted windows. These don’t serve any functional purpose as they are applied on top of the body-colored panels of the LCV.
Another interesting option is the Styling package, which includes a pronounced front splitter, protective side skirts, and a fancy rear spoiler. The bodykit can be optionally combined with the Red Accent package, adding a bit of color to the front bumper and the mirror caps, alongside a protector for the rear bumper.
VW also offers individual customization options, including different designs of 20-inch alloy wheels, black badges, high-gloss mirrors, and a black finish for the area around the bumper intakes. The latter makes a big difference in the design, looking more aggressive than the ID.Buzz GTX. Finally, the interior can be upgraded with a “hard-wearing and animal-friendly eco-leather” upholstery.
Photos of the customized ID.Buzz Cargo had appeared online a few months ago, but the packages were just made available in the Netherlands. Setting aside the LCV-specific glass-look panels, the accessories are also available for the regular ID.Buzz.
In terms of powertrains, the VW ID.Buzz Cargo is available with three options. The single-motor RWD versions produce 168 hp (125 kW / 170 PS) and 282 hp (210 kW / 286 PS) respectively, while the dual-motor AWD model is good for a GTX-matching 335 hp (250 kW / 340 PS).
If you’re wondering about the cost of the visual upgrades, you’ll need €1,795 ($1,900) for the Styling package, €1,790 ($1,900) for the 20-inch alloy wheels, €695 ($740) for the glass-look panels, €495 ($520) for the Red Accent package, and €305 ($320) for the black badges.
Adding it all up, the sporty treatment will set you back €5,080 ($5,400), on top of the price of the VW ID.Buzz Cargo that starts from €39,990 ($42,500) in the Netherlands.
Volkswagen has delivered the first US-spec ID. Buzz to Gabriel “Fluffy” Iglesias.
The comedian is a noted Volkswagen collector and owns an assortment of classic vans.
While deliveries are just getting underway, it appears most dealers are avoiding markups.
The bus is back as Volkswagen has begun delivering the ID. Buzz in the United States. This has been years in the making and the first model was handed over to comedian Gabriel “Fluffy” Iglesias by Volkswagen Group of America President and CEO Pablo Di Si.
The handover took place in California following a tour of Iglesias’ garage, which is full of Volkswagen vehicles and memorabilia. Iglesias has shown his collection a few times and he’s dubbed it the ‘Fluffy Volkswagen Museum’ as it includes a dizzying array of classic vans.
That makes it fitting the comedian took delivery of the first ID. Buzz in America. As a refresher, the model starts at $59,995 and features a 91 kWh battery pack that provides 234 miles (377 km) of range. Buyers will also find a rear-mounted motor producing 282 hp (210 kW / 286 PS) and 413 lb-ft (559 Nm) of torque.
Customers can also get a dual-motor all-wheel drive system with 335 hp (250 kW / 340 PS). It drops the range to 231 miles (372 km), while boosting the price to $67,995.
In other ID. Buzz news, dealers appear to be holding the line on pricing as we haven’t seen obvious markups in the past few weeks. That could change as more dealers receive their vans, but it’s an encouraging development and one trend that Volkswagen undoubtedly wants to continue.
However, the reality on the ground might be slightly different as we found a 2025 Volkswagen ID. Buzz 1st Edition 4Motion listed on a third-party website for $77,385. That would be a $5,000 markup, but the dealer’s own website lists it at $72,385. This could be a fluke, but it pays to shop around, especially if your dealer is trying to add a markup.
New study predicts German auto industry will employ 186,000 fewer people by 2035.
The reduction is due to the switchover to electric cars.
Prognos says change will create more jobs in areas like IT, but overall headcount will fall.
If you wanted to start work at 18 with confidence that you could put in 45 or 50 years before sailing off to a happy, comfortable retirement, a job in the German auto industry always seemed like a solid bet. People are always going to want Golfs, right? But a new study says that thinking is outdated and reckons hundreds of thousands of workers could be left unemployed in as little as a decade, with EVs shouldering much of the blame.
In the same week VW asked workers to take a 10 percent pay cut to save their own jobs, an investigation by Prognos suggests it might only be delaying the inevitable. The report predicts the switch to electrification would reduce the number of workers in the German auto sector by 186,000 in 2035 compared with 2019 levels.
The headcount reduction is mostly, but not exclusively, the result of the ‘drive systems’ of electric cars requiring fewer components than their combustion predecessors, meaning that both automaker employees and those working in the supplier industry risk losing their positions.
Jobs related to welding and metal processing, as well as business management and administration, will become more scarce, the report claims, but automakers will need to recruit more people working in IT, in electrical engineering and also (perhaps surprisingly) in mechanical engineering. Overall, though, more jobs will be lost than created, so while workers at risk would be wise to retrain, there still won’t be enough roles in 2035 for everyone currently employed in the auto industry.
The Prognos report says that the transition in the makeup of jobs at German automakers has been going on for the past few years, but will pick up steam over the next 10. And nowhere is evidence of the shift clearer than at VW, which this week asked its employees to take a pay cut and could be about to close three factories having never previously shut a plant in the company’s entire history. In fact, only a few days ago it was reported that Audi will shut down its Brussels plant, where the Q8 e-tron is manufactured, in February 2025.
VW chiefs claim that radical steps must be taken to help the company navigate its way through some tough times. And workers must be prepared to make some sacrifices in the short term if they’re to have any hope of safeguarding jobs in the long term.
“We urgently need a reduction in labor costs in order to maintain our competitiveness. This requires a contribution from the workforce,” Arne Meiswinkel, the VW brand’s personnel boss said, according to Reuters.
The automaker is struggling with a perfect storm of rising costs, a slower than expected uptake for its EVs in Europe and the US, and declining market share in China.
We recently tested the all-new Volkswagen ID. Buzz electric minivan.
Before driving it, we asked what you wanted to know about it.
Today, you get the answers in written and video form.
It’s finally here. After more than two decades of teasers, Volkswagen is about to begin shipping production versions of the ID. Buzz to customers in America. In fact, we just returned from a trip to California to drive it. Before we did, we asked what you wanted to know about it. Today, we’re going to give you the answers.
This is a hugely important model for Volkswagen. It’s a flagship in more ways than one. Not only is it the most expensive vehicle it sells, but it’s the largest, most retro-styled, and newest. Volkswagen needs it to be a hit. Clearly, a lot of people are interested in it so without further ado, let’s get to the questions.
Is it truly on sale yet?
Yes and no. Technically, those who put in orders are already receiving updates. Some customers say that their cars are already built and now they’re just awaiting delivery. On the other hand, it’s not like you can rock up to your local VW dealer and get one today. Each VW dealer is only going to get one or two on average so have fun trying to find one.
It’s improved! In fact, it’s about as snappy and easy on the eyes as any modern-day smartphone. That’s a huge upgrade over the previous infotainment system, however there are some odd choices here. For example, VW doesn’t seem to offer any way for drivers to actually see what their tire pressure is. In addition, the automaker seems determined to ignore customers and critics who point out how bad the haptic sliders are for climate control and volume.
What is the real-world range?
I’m happy to report that, during our testing, the ID. Buzz actually indicated that it would meet or beat VW’s range estimates. That means one can expect to at least match VW’s claim of 230 or 234 miles of range depending on trim and motor layout.
What are the fast-charging times per trim?
All VW ID. Buzz trims can charge at up to 200 kWh. That’s enough to allow the van to go from 10 percent to 80 percent in 26 minutes.
Can both rear rows of seats be removed easily?
No. The third row does pop out quite quickly. Sadly, the second row is bolted down and so owners will need to break out some tools to remove it should they basically want to convert their ID. Buzz to a cargo van.
How is it from a noise, harshness, and vibration standpoint?
Honestly, quite good. This vehicle is well-built and doesn’t feel cheaply put together. It does seem to be a little more jarring in the cabin than expected but it also doesn’t feel like it’s going to fall apart anytime soon. The suspension is simply firmer than in most minivans.
Does the ID. Buzz deliver on its price tag?
If you’re someone with a bunch of free cash laying around who wants to relive the good old days, then absolutely. If you’re anyone else, probably not. Look, as I said in the full review, it’s absolutely the best vehicle on the market in terms of packaging. I hope other automakers recognize that and mimic it.
That packaging though doesn’t make it worth this much cash. In fact, making it such a hardcore retro play is perhaps the biggest reason it doesn’t deliver. The original Type II bus would cost around $25,000 adjusted for inflation. This vehicle costs three times that and doesn’t come close to offering three times the value that the original did. Sure, being a much more modern vehicle, and an electric one at that, drives up costs, but if VW had managed to offer a more affordable version, it would certainly draw in a much wider audience.
VW insisted Scout is an independent brand, despite being backed by the conglomerate.
The National Automobile Dealers Association is ready to challenge Scout in court.
Scout has decided against using VW’s huge network of dealers to sell its models.
Scout Motors infuriated VW dealers across the United States last week when it confirmed that the upcoming Terra and Traveler will be available via a direct-sale model rather than through existing dealerships. However, state dealer associations and the National Automobile Dealers Association (NADA) are already fighting back and looking for ways to block the revived brand’s hotly contested plan.
While Tesla was a trailblazer for direct-to-customer sales in the US, it faced many legal hurdles in skirting regulations designed to protect franchised dealerships. Scout differs from Tesla in that it’s not a true startup and is owned by the VW Group. Its affiliation with the German car manufacturer may complicate its ability to sell vehicles without involving dealers, according to Richard Sox, managing partner at Bass Sox Mercer law firm.
“In the vast majority of states, the OEMs are not permitted to sell direct or compete with their dealers,” Sox told Auto News. “There are some exceptions to that, but those exceptions generally relate to the non-legacy OEMs who do not have and have never had a dealer network, i.e., Tesla. They’re affiliated with Scout, they have ownership. They have potentially some control. It certainly complicates Scout’s ability to sell direct in those particular states that would otherwise allow a manufacturer that is completely separate from a legacy OEM to sell direct.”
Scout has been eager to declare its independence since launching. The company plans to establish dedicated retail spaces across the country, allowing shoppers to place orders online. Scout will also manage all production and maintenance of its vehicles.
The chairman of Pohanka Automotive Group, Geoffrey Pohanka, has rejected the claim that Scout is independent of VW, telling Auto News “it’s the same”. He added that “VW has worked hard to reestablish itself in the United States, and they’re very sincere about that. This is contradictory to all the efforts they’ve made to reinvigorate the brand with new models.”
NADA’s chief executive, Mike Stanton, stated that the association is ready to challenge Scout “in courthouses and statehouses across the country.” While it remains unclear what legal route NADA will pursue, Stanton noted that “everything’s on the table right now.” He predicts that Scout’s plans to manage every aspect of the ownership experience through its app “will fail.”
University of Michigan Law School professor Daniel Crane believes dealer associations may first pick states where they have the strongest standing before beginning the legal battles. Richard Sox added that his law firm has already started working with 10 state dealer associations and is looking for the best ways to push back against the direct-to-consumer sales strategy.
Volkswagen has been warning things were looking bad and their third quarter results confirm that.
Sales fell 8.3% in Q3, further exacerbating a troubling 20.5% decline in year-to-date profits.
The automaker attributed the poor results to issues like a challenging economy, high costs, and EV resistance.
The Volkswagen Group has revealed their third quarter earnings and there’s no sugar coating things as it was a brutal three months. Compared to this time last year, sales dropped 8.3% while profits plunged 41.7%.
The company only made €2.86 ($3.11) billion in Q3, which was down from €4.89 ($5.31) billion last year. Given that drastic drop, it’s not surprising the automaker has been eyeing plant closures, cost cuts, and massive layoffs.
Through the first nine months of the year, Group sales were down 4.4% to 6,762,000 units. This, in turn, helped to push their operating result 20.5% lower to €12.91 ($14.03) billion. The latter figure comes even as sales revenue was up slightly.
Volkswagen blamed the lackluster performance on a variety of issues including higher fixed costs and restructuring expenses. The company also cited supply chain shortages, a challenging macroeconomic environment, and a “comprehensive renewal” of their luxury sport product portfolio.
CFO Arno Antlitz noted the Volkswagen Brand had an “operating margin of only two percent after nine months. This highlights the urgent need for significant cost reductions and efficiency gains.”
The Group’s EV push has also stalled as the automaker confirmed “industry-wide buyer reluctance” to electric vehicles. This is a huge problem for a company that has embraced EVs and Volkswagen said the sentiment helped push electric vehicle deliveries 4.7% lower than a year ago.
While it’s been a rough few months, there are signs of hope. Audi’s lineup has been extensively revamped with new models including the A5 and Q5 as well as the A6 and Q6 e-trons. Lamborghini has also introduced the Temerario, while Volkswagen has an assortment of new and updated products.
Despite these positive developments, things won’t get better overnight and deep cuts are coming. Previous reports have suggested three German plants could be on the chopping block as well as a facility in Brussels.
Scout’s direct-to-consumer model bypasses traditional VW dealerships, frustrating dealers and sparking potential legal challenges nationwide.
Established as an independent company, Scout avoids state franchise laws that would otherwise require dealership involvement.
The new Terra and Traveler are expected to begin production in the U.S. in 2027, with prices for both models starting at under $60,000.
VW dealerships in the United States hoping to get a piece of the action with the new Scout Terra pickup and Traveler SUV are out of luck. The revived brand has confirmed that these models will be sold directly to customers, bypassing the traditional dealership network.
For the past few years, VW’s leadership has been debating the best way to market vehicles from its American-based startup. Dealerships had suspected as early as May 2022 that Scout might adopt a direct sales model, well before the new models were officially unveiled. VW offered them no assurances that they’d be included in the sales process, leaving many dealers bracing for disappointment.
While speaking about the new Terra and Traveler at the presentation, Scout chief executive Scott Keogh confirmed that the company will indeed adopt a direct-to-consumer sales model.
Dealerships Prepare for a Legal Battle
Unsurprisingly, this hasn’t gone down well with existing VW dealers. Backed by the National Automobile Dealers Association and the Automotive Trade Association Executives, they’re reportedly gearing up to pursue legal action in an attempt to force Scout to reconsider its direct-to-consumer strategy, Auto News reports.
“Assuming they take this other path, let’s face it, there’s going to be challenges and problems for them virtually everywhere across the country,” said John Devlin, the 2024 chairman of the Automotive Trade Association Executives and CEO of the Pennsylvania Automotive Association. “My counterparts around the country are not just going to roll over.”
Scout’s Independence Gives It Flexibility
The problem for VW dealers is that Scout has been established as an independent company, a move that clears the way for a direct-to-consumer model without conflicting with VW’s franchise dealer network.
“Because of the way the franchise laws are in many states, if this were to be a Volkswagen company, it would be forced to not compete against Volkswagen dealerships,” Sam Fiorani, vice president of global vehicle forecasting for AutoForecast Solutions, told Auto News. “But as a standalone company, they are working to get around requiring franchise dealers, period, to carry the Scouts.”
Scout Motors is looking to establish a one-to-one relationship with its customers, directly offering reservations, sales, delivery, and servicing. It adds shoppers will know exactly what they’re paying for with “full price transparency,” and says “vehicle purchase transactions will be completed in minutes.”
Interested buyers will be able to see Terra and Traveler models at dedicated retail spaces across the US. Test drives will also be offered at these sites. Scout Workshops are also being established but the firm notes approximately 80% of repair types can be completed outside of a Scout Workshop, “whether in a driveway or while adventuring.”
Reservations Open, Production Planned for 2027
Scout has already started accepting reservations for the two models, requiring a $100 reservation fee, which is fully refundable. Prices for both the Traveler and Terra will start at under $60,000 before incentives, and production will begin at the Scout Motors Production Center near Columbia, South Carolina, in 2027.
Battery-electric and range-extender powertrains will be offered. Fully electric models will use two motors, featuring an 800-volt electrical architecture, and offering up to 350 miles (563 km) of range. A gas range extender with a small engine designed to recharge the high-voltage battery is also in the works. This model will have a range of more than 500 miles (805 km).