Volkswagen model is elevating the costs for fashions with combustion engines by a mean of 4.4 p.c, the automaker’s sellers in Germany have been advised.

VW stated “vital price will increase within the procurement of uncooked supplies, power and tools” was the rationale for the value hikes in a letter to sellers obtained by Automotive Information Europe sister publication Automobilwoche.

Common fashions such because the Golf, Tiguan, Passat wagon, Polo and T-Roc are included within the worth will increase.

The rises are as a result of take impact on Feb. 23.

“Even Volkswagen can not escape excessive inflation. Though we’re working as greatest we will with long-term contracts, hedging transactions and effectivity will increase, the impact on prices can’t be absolutely compensated,” VW stated.

Sellers criticized the transfer.

“I am shocked. Our gross sales are falling and they’re elevating costs,” stated a VW seller who requested to stay nameless.

Automakers needs to be chopping costs due to shopper uncertainty amid the present financial atmosphere, sellers say.

Antje Woltermann, fom ZDK German seller and restore affiliation, stated: “Incoming orders depart rather a lot to be desired. Producers have to think about whether or not their costs are nonetheless in step with the market.”

VW shouldn’t be the one automaker elevating costs for brand spanking new fashions.

Final 12 months, the common worth of a brand new automobile elevated by a mean 5,000 euros, in keeping with the automobile knowledge gathering firm Deutschen Automobil Treuhand.

One VW seller stated the automaker had raised costs by practically 11 p.c between mid-2021 and mid-2022.

Clients shopping for automobiles by means of financing provides should additionally pay extra. Rates of interest have risen by greater than 5 p.c, in keeping with the Check24 worth comparability web site.

Reuters contributed to this report