FRANKFURT — Volkswagen will ax its Passat sedan in Europe and the U.S. because the automaker will increase its concentrate on electrical automobiles and SUVs, firm sources aware of the plans mentioned.
In Europe, VW will preserve solely the Passat station wagon when a brand new technology of the midsize automobile is due towards the tip of 2023, the sources informed Automotive Information Europe. The wagon will proceed in markets corresponding to Germany the place the physique model stays common.
The Passat is Europe’s No. 1-selling midsize mannequin, with a quantity of 88,478 items by means of October, in line with JATO Dynamics market researcher. Its closest competitor at No. 2 and platform mate, the Excellent from sister model Skoda, had gross sales of 47,889 throughout the identical interval.
Within the U.S., gross sales of the Passat increased 25 percent in the course of the first three quarters, in line with VW of America information, however have been low at simply 16,190 items.
In consequence, administration has no plans to interchange the present U.S. model due to the continued shift away from sedans to crossovers just like the Atlas. “Going ahead, the dimensions of this market in the US will probably be negligible,” mentioned a senior VW supervisor briefed on the model’s future product rollout.
The U.S. model of the Passat is constructed at VW’s plant in Chattanooga, Tennessee, the place the automaker additionally produces the Atlas crossover. The Atlas is VW model’s No. 2-selling mannequin within the U.S. after the Jetta. Atlas gross sales fell 37 p.c to 37,927 automobiles within the first three quarters, not together with an extra 17,990 gross sales of the newly launched Atlas Cross Sport over the identical interval.
VW builds the Passat for Europe in Emden, Germany. Manufacturing of the midsize automobile will transfer in 2023 to the corporate’s manufacturing facility in Bratislava, Slovakia, the place it will likely be constructed alongside the Excellent, VW mentioned in a statement on Nov. 13.
The Excellent will goal midsize patrons in central and japanese Europe, the place sedans are most well-liked. The transfer will scale back inner competitors between VW model and Skoda, one other VW supply mentioned.
VW is liberating up its Emden plant to construct solely battery-electric automobiles together with the ID4 crossover and a midsize electrical sedan codenamed Aero B. The ID4 can also be scheduled to be inbuilt Chattanooga beginning in 2022, and sources say it will make sense to provide the Aero within the plant.
The recognition of midsize sedans has been dropping quick in Europe, largely as a consequence of patrons gravitating both towards SUVs for larger cargo area and towing quantity or to fastbacks which have a sportier silhouette.
Enterprise fleets at the moment are the principle European purchasers of midsize sedans. In Germany, 9 out of 10 Passats are registered to company patrons, who often select the wagon model for its larger performance.
U.S. patrons have been even much less enthusiastic concerning the midsize sedan phase, sealing the destiny of the Chattanooga-built Passat.
The Arteon, a midsize fastback variant priced above the Passat and inbuilt Emden in sedan and capturing brake variations, may even not get replaced. VW will concentrate on the manufacturing model of the coupe-styled Aero in sedan and wagon physique types.
Whether or not the manufacturing model of the Aero will probably be inbuilt Chattanooga or imported from Germany, stays unclear.
VW offered 11,234 Arteons in Europe by means of October and a pair of,641 items of the automobile within the U.S. within the first three quarters.