The woes of the Volkswagen Group are so well known and oft discussed in The Morning Dump that it’s almost not worth repeating them. One version is that the company’s hubris is to blame for all its troubles. This tendency to assume the company could do everything if it just threw enough engineers at a problem allowed it to underestimate Toyota and hybrids which led to Dieselgate and, in the fallout of that, led it to believe it could quickly catch Tesla as an EV automaker while completely missing the threat from China. Another version is that Volkswagen expanded at exactly the wrong time, buying too many brands and it got caught flat-footed.
Of course, nothing with Volkswagen is ever simple, and CEO Oliver Blume’s proposed plan to nix approximately 50% of all models and 75% of all variants from the Volkswagen Group lineup and cut back on production faces a lot of internal resistance. Someone who doesn’t have to care so much about what his own board of directors thinks is Tesla CEO Elon Musk, whose company just went the opposite direction and introduced a new Model Y variant.
BMW continues to be the strongest luxury brand in the United States and, in fact, BMW’s sales in the Americas now outweigh the company’s sales in China, which is a sign of how much the rise of the Chinese car industry has stymied German automakers.
Volkswagen’s Dangerous Game
My neck is still recovering from whiplash this morning. Yesterday, the story was the success of the Porsche 911, due in no small part to how many variants the brand offers. Today, Volkswagen Group CEO Oliver Blume and CFO Arno Antlitz are announcing that the way forward is a reduction of models by 50% and variants by 75%.
Here’s Blume, via Handelsblatt, explaining the why, if not specifically the how:
Blume said on Friday that the board was “continuing to drive the transformation” and was “taking responsibility for the sustainable future of the company with the most comprehensive realignment in the company’s history – at a time when the automotive industry is under great pressure worldwide.”
With his vision for the future, Blume aims to position the company more robustly and competitively, even in a massively challenging global environment. “We are limiting risks, unlocking new opportunities through our own strength, and sending a clear signal for a new beginning in Germany as a business location.”
This change is necessary as Volkswagen’s brands continue to suffer in China (VW’s brands were down 37% there in Q2 of this year), and as the company’s over-commitment to the EV head-fake and failure to develop its own software have eroded its income and margins. All of that, combined with a suddenly protectionist trade policy in the United States, have made it necessary for the company to consider dramatic steps. No one with any sense believes that Blume should just stay the course and hope it all works out in the end.
Is simplification of the lineup the way forward? I’m less sure.
Nothing I’ve seen explains in any detail which models are getting cut, where they’re getting cut, or what kind of variants are going out the window. It’s possible that Volkswagen Group hasn’t even finalized what that looks like. There’s some logic here and, until I see the full plan, I cannot fully dismiss it. My initial instinct is that it’s highly unlikely that anyone at Porsche would allow the company to cut variants of, say, the 911, which typically provides a lot of cash for the brand. Bentley, too, relies on variants to generate a rich margin. Lamborghini is probably also safe, although it’ll continue to be necessary for all of those brands to share platforms going forward.
It may seen a bit odd to Americans to consider that the biggest culprit here is probably Volkswagen’s namesake brand, mostly because Americans have a paucity of models to choose from. The rest of the globe gets many, many Volkswagen models. Does the company need the Taigo, the T-Cross, the T-Roc, the T-Roc Cabriolet (coming to Pebble Beach via The Autopian in 2045), the Tayran, the Tayman, and the ID.7 Tourer?
Okay, I made up one of those, but you probably don’t know which one. Simplifying this lineup is completely sensible. Not only does VW sell the Taigo, it also sells five different variants of that in-betweener small crossover. Śkoda has been a brightspot for Volkswagen Group, and it gets by with far fewer models and fewer variants. The same can be said for SEAT (assuming you break Cupra out as its own brand).
Reducing all of these Malcolm Gladwell-esque variants likely means being able to streamline and reduce production, which is key for the company to save money. Even though most of these vehicles are built on a small number of VW Group platforms, dedicating production to lower volume models that aren’t high-margin, high-priced vehicles like a 911 is inherently inefficient.
Accepting the logic of streamlining, I don’t necessarily accept the logic of cutting 50% of all models across all brands and 75% of variants. That’s a lot of cars. While there are some signs that legacy OEMs can utilize existing joint ventures with Chinese automakers to get back some demand in China, the future of Volkswagen is probably outside China. People like choices and in North America, where VW damn sure needs to be competitive, the greatness of both Audi and VW came from having competitive vehicles with a high degree of optionality.
I remember when my best friend got his Mk 4 Golf. He’s not like me, so he went with a non-GTI automatic four-door in black, but nicely optioned with the incredible purpleish blue-und-red backlit gauges and buttons. He could have also had a diesel or, if he was like me, a two-door GTI. The appeal of Volkswagen was getting what you wanted, and the company’s attempts to de-content cars and oversimplify with models like the NMS Passat made the brand a lot less interesting.
Looking at the United States, both Volkswagen and Audi are suffering from a lack of truly competitive or interesting products. Not only do the cars need to get better (it sounds like the Tiguan Turbo is a big step in the right direction), but there need to be more choices. How that gets balanced with this push is unclear to me, and I fear that Volkswagen could make the mistake of reducing its lineup to a few models that are generally not compelling.
The Lotus line used to be: simplify and add lightness. For Volkswagen, I think the company needs to go back to the fun cars it used to build. Think of it as simplify and add brightness.
Blume’s ‘Large Package’ Likely To Come In Pieces
I will admit to thinking, on occasion, that I could maybe do a better job than some automotive CEOs. I’m almost certainly wrong and, in the case of Volkswagen, I would never make so foolish an assumption. The politics of Wolfsburg and the various families who own Volkswagen are too complex. I would do a terrible job.
Blume did great work at Porsche and stepped into a VW Group still reeling from Dieselgate and trying to catch up on electrification/software. While I’m sure Blume would have done a lot differently with hindsight, the logic he followed was the logic that pretty much every automotive CEO followed at the time.
Something has to be done and Blume has offered a dramatic plan. My question is whether or not Blume thinks he’s going to get everything at once, or is strategically making a huge ask so that he can, at the very least, get some of what he wants. This is the logic of my daughter asking for an afternoon of screentime so she can get an hour.
This is the question I have after reading this Handelsblatt column, translated as “Blume’s large package is now arriving in individual parts.”
Germany’s most powerful auto boss had originally intended to present his future plan for VW as a comprehensive package.to bring it through the supervisory board. That would have created clarity – for investors, employees and managers.
Instead, the board now has to fight for each package individually : the investments, the personnel issues, and then – presumably sometime next year – the reorganization of the corporate structure. What was meant to be a major breakthrough has turned into a drawn-out process . And investors and employees are asking themselves: What exactly is going on?
One might add, somewhat maliciously: It’s going exactly as one would expect from Volkswagen. The company’s management system was originally supposed to be revised by March 2025, although the initial agreement was for 2024. Now it’s July 2026.
Is all this tsuris a bug or a feature? Did Blume expect a rubber stamp, or is he asking for more than he needs so he gets what he wants? It’ll be fascinating to watch this all play out over the next few months.
Behold, The Tesla Model Y Longboi
While VW is cutting back variants, Tesla is adding them. Specifically, the long-wheelbase Tesla Model Y that first appeared in China is coming to North America. I think the longboi Model Y looks a little better proportioned than the stock Model Y, and I also think that the 2x2x2 seating with center captain’s chairs is an ideal layout for a vehicle like this. It’s also an improvement over the cramped three-row option in the current Model Y.
At the moment, the only reason to order one is because you’re a huge Tesla fan, because the company is doing its usual business of offering an expensive “LAUNCH EDITION” for the diehards. While the base Model Y RWD is still a great deal at $37,900, the $61,490 price for the longer Model Y puts it in league with vehicles like the larger Kia EV9.
I’m guessing the regular, RWD longboi will come in closer to the Kia and its Hyundai twin.
BMW Is Still The Luxury Leader In The United States
I don’t know how I feel about the BMW iX5 yet. I guess I’ll have to see it in person. Of all the German automakers, I’ve long had the sense that BMW has the best plan and is producing the best products. If you look at the last generation of true EVs from the Germans it’s clear that, aesthetics aside, the BMW iX is far better than either the Mercedes EQ variants of the Volkswagen ID. I may prefer the Taycan, but as a mass-market car the iX was probably a better fit for most.
While BMW has all the same maladies in China as everyone else, it’s kicking butt here in the United States.
BMW deliveries rose 13 percent to 102,713 in the second quarter with robust results by the 3 Series compact sedan, X3 compact crossover and X5 midsize crossover.
BMW sold 186,944 vehicles in the first half of 2026, up 4.7 percent.
Lexus was a distant second with sales of 88,760, a decline of 7.5 percent. Lexus’ U.S. deliveries totaled 169,712 for the first half, a decline of 5.2 percent. The drop in quarterly sales largely reflected the impact from one vehicle: the ES sedan, which has undergone a redesign and is just beginning to arrive at dealerships.
Mercedes-Benz remained in third place with retail sales of an estimated 75,000 passenger vehicles in the quarter. Mercedes has sold an estimated 145,000 passenger vehicles in the first half, down 3.5 percent.
Lexus could always catch up and, by next year, it might on the strength of the new ES. In the meantime, BMW is in a decent position and is, for the first time in a decade, selling more cars in the Americas than in China.
What I’m Listening To While Writing TMD
Sienna Spiro’s first album is out and it’s a good listen, if not maybe a little one note. The standout track for me is “Great Expectation,” which has an Adele punch with a bit of Amy Winehouse swagger.
The Big Question
Ok, you’ve got to cut half of all VW Group models. Go.
Top photo: Eaglemoss, VW
Type 1, Type 2, Type 3, Type 4, call it a day. Maybe throw some Thing in there.
Cutting half of the executives would save a bank vault of cash.
Or is that mostly American companies who overpay their execs?
The board of directors are always other execs, so they just pat each other on the back and approve the pay pakages.
That’s exactly the way to go. Cut the board of directors by 50% and Oliver Blume’s salary by 75%. VW’s ownership structure has provided them with incredibly incompetent executives for decades. I used to be a fan of all things VAG, but now I’m not sure the whole mess is worth saving.
Automakers should be able to cut models while still maintaining the ability to customize. Offer all engines across all trims. Offer two door or 4 door. Hatchback or standard trunk.
Right now it feels like theres an entirely new model with a new name for hybrid vs. ICE vs. electric. There’s a new model and name for the “sedan” and the “crossover”. At the risk of sounding like a grumpy old man, go back to the formula that got them to where they are. Golf/Rabbit- 2 or 4 doors? Which transmission? Which engine? Which interior? They’re all a Golf- mix and match to your taste.
It actually seems surprisingly easy for VW to cut half of the lineup. There is no world where we need the Tayron, Tiguan, T-Roc, AND Taos. Pick one, it’s fine.
How would I cut 50% of Volkswagen?
I guess I’d go with just calling it “Volks”.
That’s all, Volks
They already cut the wagons in North America. Boo!
I’d go the other way and just do Wagens
No love for Kswag? Lkswa?
I’ll take the “vagen” part. Make mine a 6 speed manual.
I couldn’t remember what VW sells, went to their website, and, uh, the nav options are: Menu, Offers, Find a Dealer, Search Inventory. The menu button didn’t work. I dunno, maybe start by actually allowing people to see what you sell?
Don’t worry, you didn’t miss much. These aren’t the VW’s you’re looking for. Move along.
That’s just their way of getting you used to their (horrid) user interface system…
I think more divisions, more sub-brands, more rebadges will fix everything for VAG.
Merge with Stellantis, I guess.
WINNAR!
This is how you beat the Chinese.
Then have a cage match.
VW should sell the GTI, the Atlas, and the Tiguan.
Audi should sell the A4, A6, A8, Q3, Q5, and Q7.
Porsche should sell the 911, 718, and Cayenne.
I don’t know if that’s half their models removed, but it makes sense to me.
I’d throw Jetta in on VW, but other than that, spot on.
Non-luxury sedans are dying, and the Jetta is uninspiring. There’s no justification other than nostalgia to keep it around.
I actually think non-luxury sedans are going to come back. The Jetta has gotten long in the tooth, but I think an all-new one would actually help them. Make it a hybrid and update the tech stuff. I love my ’21 GLI and would consider a new one if it was truly new.
A lot of “luxury” these days is useless ‘me too!’ tech.
So I think non-luxury sedans with adequate but not stupidly excessive power, low NVH, high quality cloth seats, hard but good looking plastic surfaces, power everything, and actual gauges/knobs/switches/buttons that can be depended on to outlast the warranty could do quite well.
If it’s a VW make the seats plaid.
I think in America that’s too not far off from their current line. It seems like it’s overseas that they offer a billion models.
So now I need to check it out. I’m deleting:
VW: Jetta, Taos, ID4, ID Buzz
Audi: Etron, A3, A5, A7, Q4, Q8, Q9, Nuviolari?
Porsche: Taycan, Panamera, Macan
15 deleted, 12 kept. Better than I thought, something from the delete list can be brought back to life. Probably the Taos, I had overlooked that initially and it’s a reasonably important segment.
I’d say to keep the ID Buzz, but I’m not sure VW is capable of doing what is necessary to make it a compelling product (increasing the range by like 100 miles while also shaving like $20k off the starting price). So yeah, kill it.
With platforms shared across Seat, Cupra, and Skoda, my first impression is that VAG has a GM-type problem of too many brands and needs to figure out which is the Pontiac or Oldsmobile to axe, but I could be entirely wrong. Maybe it’s helping them sell across multiple global markets.
Here in the US it feels like the evergreen problem of VW having zero clue about what makes the North American market work. They’re always a decade behind. Way too late to develop competitive crossovers. TDI was the wrong bet vs hybridization and now they have neither and rely on ICE only or unremarkable EVs. They killed the standard Golf hatch and wagon that sold reasonably well to people who intentionally didn’t want a crossover.
Granted, they are now in the North American segments they need to be in–a single decent affordable sedan, 3 crossovers ranging from compact to 3-row, and an enthusiast offering still clinging to life, if barely. But they still don’t have hybrids or a reliability reputation and the budget Audi feel of 15 years ago.
So, TBQ: no idea what they should cut globally, but here in the US they don’t need fewer models, they need better ones.
This, and your last point is absolutely spot-on. VW was the relatively affordable alternative to the boring mainstream. Remember when the Passat was the left-field alternative to a Camry or Accord? It wasn’t a set-it-and-forget-it ownership experience like those, but it was a hell of a lot nicer to drive and spend time in if you care about driving. Turn the Passat into just as much of a forgettable appliance, and it lost all relevance—a pattern we’ve been seeing VW repeat over and over for the last fifteen years now.
The B5 Passat still might be one of my favorite cars, in terms of daily driving duties. The ex had an 05 Passat wagon and man, that thing was leagues nicer to drive and to sit in than many of its competitors. His mom had an 04 Taurus and I know they weren’t exactly the same segment, but the Passat made the Taurus feel about 20 years out of date.
You could spec those in so many ways too. Available as a wagon or sedan, with a diesel, VR6, 1.8t, or W8 engine. All could be paired with an automatic or manual, and both transmissions offered front or all wheel drive. You could get full leather of course, but you could also pair cloth seats with seat heaters, a nice touch. Believe they offered beige, grey, and black interiors as well.
Yes I know about the reliability of those, I did a decent bit of preventative maintenance around 140k miles and it made it to 200k with very little work after that. Never left us stranded.
My 03 B5 was the best car I ever owned. Just a really nice car. Reliable, too.
I had a B5 Audi A4 way back and it was a great car to drive, I assume the Passat was roughly similar. Though it quickly buried me in expensive repairs. Years later in 2016 I got a rental Passat on vacation in Hawaii, and I was really impressed with how good it was to drive (even compared against my daily, a ’00 3 series), and compared to the Altima I got on the same trip after hopping to Kauaii the VW was night and day more fun. And I believe this was the generation that got panned for starting the de-contenting and cheapening doom spiral.
And back when they felt special (for their price) you could sort of justify the higher running costs and lower reliability because you got a car that had a unique value proposition. Now it’s like ok so I’m gonna roll the dice on VW reliability and get what in return, stupid capacitive touch buttons that 1% of the population thinks are cool?
Not only did they drive better (although the Accord has always been a good driver too), but the automotive press always raved about the quality of the interior materials and how VW punched above their weight class in that respect.
Fully agree, they are characterless mainstreamers now. The iconic nameplates are gone and milquetoast crossovers aren’t going to build the reputation back.
Mazda carrues the VW mantle in my view. Material quality, driving character, styling all a cut above the Toyota/Honda defaults. Shame their only sedan/hatch option is cramped.
It might not be as easy as those brands have different plants in different countries with their own governments.
If GMs Pontiac had been based in Canada and Saturn in Mexico, the situation would be more similar.
I was a two time Jetta Wagon TDI buyer but the Golf Hatch / Wagon absolutely did not sell well. VW only sold 37K of the entire family COMBINED in 2019 (Golf, GTI, R, eGolf, Sportwagon, Alltrack). That is not reasonable well and they very reasonably retooled the factory to make Taos that outsells them with a single model.
In Europe and some export markets Skoda and SEAT/Cupra provide lower cost models and some different offerings. Both Czechia and Spain are lower cost than Germany and they offer some different vehicles than VW.
I think VW needs to keep an eye on the truck business as well. While the Transporter has a loyal following the Crafter is just a rebadged Sprinter and Volvo, Mercedes and PACCAR are eating Traton’s lunch.
TBQ:
I find most of the VW and Audi models sold in the US to be nearly indistinguishable. I could answer this question by randomly picking 50% of models out of a hat and cancelling them. VW and Audi, at least, have done a terrible job of differentiating their offerings.
VW’s weird models names also haven’t done them any favors. I have a hard time remembering which is a Tiguan and which is a Touareg… or knowing (or even caring) what the hell a Tiguan or a Touareg is (both the car models and an actual Tiguan/Touareg). I honestly don’t know what VW models are currently available, partially because their models are indistinguishable and partially because their model names are unpronounceable.
As for the BMW iX5 shown above, after seeing that photo I couldn’t help but think it kinda resembles the Buc-ee’s mascot. I like that styling when applied to a cute stuffed cartoon beaver. I’m less enthused a out that styling when applied to an SUV. The bucktooth grill and X-shaped headlights (which make it look like a cartoon character seeing stars after being bonked on the head) are… distinctive.
They could make a subcompact SUV and call it the Rabbit. Would probably sell better than a Tiguanareg or whatever alphabet soup they’re slinging now.
VW should sell just two CUVs – a small one and a big one.
Call them “Small Thing” and “Big Thing”
TBQ: I think I can start by gutting a fair bit out of Audi alone. No more coupe-sedans as separate models. No more coupe-SUVs, ever. Also, Nardo Gray is now banned. Then we can look at VW cleanup.
Also is it seriously the “longboi?” Tesla continues to be the paragon of a professional and mature company…
AFAIK it’s the Model Y L. The nickname wouldn’t be a surprise, however.
Would actually be hilarious, but no, fake news. The L is for Long Wheelbase officially. But I’m sure longboi is the semi-official designation used far more commonly.
The fact I considered it wasn’t for a moment says a lot about the company…but I can deal with Y L.
A company whose model names spell S3XY and CyberTruck and CyberCab like it’s 1992 again. Plus features like Autopilot, Plaid Mode, Insane Mode, Ludicrous Mode, and Bioweapon Defense Mode. Longboi fits right in.
Proudboi would be appropriate as well.
Audi sells high-performance crossovers and SUV. So does Porsche. Start there.
VW needs 3 vehicles:
-Touareg
-ID Buzz in hybrid or EREV format
-Golf
Add the Beetle in drop top variety if you need a 4th.
They should also make a van that doesnt cost $70k
I’d keep the Jetta as well since it’s such an evergreen brand on the US market but return it to its Golf with a trunk roots.
Part of me wants to say “because it’s VW’s plan, that’s how” but that might be unnecessarily cynical.
Maybe vw needs to do to their super / hyper car / luxury brands what they did with their commercial brands. Spin them off into their own thing. Vw just being the people cars again. Just treat Audi as fancy VWs. Keep seat and skota as cheaper VWs but globally with actual cheap things. Maybe make seat the cheap bev brand. Keep skota cheap ice. Porsche I’m not sure if you spin that off in the luxury/ super car or keep that as your top end. Probably top end of vag.
Cut the goddamn crossovers. Almost all of them. VW doesn’t need a Taos, Tiguan, and Atlas. Audi doesn’t need a Q3, Q5, Q6, Q7, Q8, etc. Those markets are both oversaturated and filled with cars another half-assed VAG grayscale blob isn’t going to move the needle in. They need a mid sized crossover and a 3 row crossover. Everything else is frivolous.
Then get back to selling quirky cars and reinvigorate your household names. No one thinks of a fucking Taos or IDwhatever when they think of VW. They think Jetta. They think Beetle. They think GTI. They think plaid seats. They think manual transmissions. They think interesting colors.
Literally no one goes car shopping and thinks “damn I need to get me an ATLAS!”. Same with Audi. Beige lease machine crossovers are not what comes to mind when you hear Audi. The TT is. The R8 is. S4s with NA V8s are. Allroad wagons are. So on and so forth.
Focus on what people actually fucking want rather than taking the very German “we know what you want better than you do” approach that got you in this mess in the first place. You completely zapped the character out of two brands that were most known for that character in the name of making cars that offend the least amount of people possible.
STOP IT!
People like crossovers – that’s why the sell so well.
However, I think you’re partly onto something. They have way to much overlap in their product lines. They need to cut each brand to a couple of models – and the dealers sell all the brands.
For example, Skoda gets the small car. VW gets the midsized ones and Audi gets the big luxury sedan. Porsche sells the sports car. Same for crossovers.
Well put together and well stated rant. Agree!
I love manuals as much as anyone here, but they 100% are not going to add any appreciable sales.
VW’s a bit low on goodwill these days.
I don’t know. A “halo” trim for the Golf should continue to exist with a manual. The GR Corolla debuted with a manual, Supra and Z400 both were auto only until recently when the winds changed.
It doesn’t even need to be the R or a truly halo trim. GTI with a manual. Compete with the Civic Si and Toyoburu twins.
The problem with the manual on the halo trim is VW clutches are weak sauce. Every Golf R owner I know with a manual shredded the OEM clutch within 10k miles, had VW refuse warranty, and replaced it with an aftermarket version.
That’s a separate, solvable issue. But it also gets at, why choose unreliable, problem-prone VWs over any Japanese or Korean contemporary, new or used?
I agree with some of this, but axing crossovers is bananas. The brand is held afloat almost solely by the Q3 and Q5, with the Q7 and its “third row” in third. Cadillac made some of the best sedans on the planet and nobody really bought them except for a handful of enthusiasts or people who didn’t care too much about having a BMW or Lexus badge. Proposing to axe the only segment currently keeping them alive is Nsane.
The new Q7, Q9 and Allroad (and the Nuvolari, I guess, if you count millionaire shit) are all steps in the right direction, but it will be at least 5 years before we start seeing signs of a turnaround. Especially since that’s when their “new” interiors and refreshes will be coming, which are supposed to be less piano-black-and-a-screen and more Nuvolari like than they are today.
“ Proposing to axe the only segment currently keeping them alive is Nsane”
My brother in Christ, it’s right there in my name. I ain’t here to deliver cold takes! And I don’t think they should completely axe crossovers, I just think they could save some money by simplifying their lineup. We’re about to have what…a Q3, a Q4, a Q5, a Q5, a Q7, a Q8, and a Q9?
I’m a neurodivergent car nerd and I don’t even think I’ll be able to tell you which is which….
My husband came home yesterday and told me that a new co-worker drives some kind of Audi crossover, and all I could do was shrug. He said it was big and kind of fastback-y, and that still didn’t really narrow it down—there’s like four or five different models that fit that description.
There’s no reason why they can’t keep the Taos name and identity but make the next redesign a lifted Golf with zero expensive body stampings of its own. Works for the Subaru Impreza and Crosstrek.
They already tried and failed at that with the Golf AllTrack wagon thing. When you can’t sell a Wagon with AWD and a lift and black cladding and while offering it as a manual (what possible segment have I missed here?) you have truly failed in the US market and there is no more goodwill remaining. Just take the rest of the stuff on the lot to the actual Goodwill and pull out.
I adore your hot takes! My proposal would be slightly different. VW can keep the Taos, Tiguan, and Atlas. They technically each cover a defined area in the crossover market.
What I would do, instead, is make them distinctly VW. My problem with VW’s lineup is that it’s really generic. We’re so far gone out of the “Das Auto” and “Un-Pimp Your Ride” eras that VW’s practically unrecognizable. I’d bring back the VR6, do crazy engineering projects, maybe try to make diesel cool again. I don’t know, I’d just do something different than every other automaker. Today’s VWofA is about as German as an Oktoberfest in a rural Midwestern town.
“make diesel cool again”
That made me laugh out loud. VW has to be seriously gun-shy about going anywhere near diesel.
I don’t think I agree. There is a big difference in price, size, buyer, etc of a Taos, Tiguan, and Atlas. I really think they should stick with those (ditch the Atlas Cross though). But, they are missing desirable variants of each (some kind of hybrid offering, maybe a performance model, idk, something more than just a standard boring milquetoast engine).
Audi though, yeah, there isn’t much of a difference in the Q5 and Q6 or the Q7 and Q8. I’d be fine culling one of each pair or making them substantially different (i.e. make the Q7 more X5-sized and the Q8 substantially bigger and more X7-competitive or even Escalade-sized.
I think this largely goes with my feeling that they should abandon the niche-submarkets and much more highly concentrate on the major markets. I.e. get out of the SUV-coupes, go harder in small, medium, and large SUVs. Stop offering sedan-coupes, go hard in either sedans or coupes.
For like 70 years, subcompact, compact, midsize, fullsize was like the strategy to sell sedans. I’d wager it should still apply to crossovers. Heck, look at all the brands doing it:
Honda: HRV, CRV, Passport, Pilot
Chevy: Trax, Trailblazer, Equinox, Blazer, Traverse (that’s more)
Toyota: CHR, Corolla Cross, Rav4, Crown Signia, Highlander, Grand Highlander (even more as well)
Small, Medium, and Large (what VW currently has) doesn’t seem like the problem. Their vehicles just don’t seem super competitive right now; that’s what I think the biggest problem is. Make them better (higher quality or better design/features) and/or cheaper…
I think that’s exactly it. Cross overs are just the new cars and have segmented the same way.
So many people have been burned by VWs poor quality or know someone that has. The only way to fix that seems to be the HKG method that has also worked for bev ofong warranties. If you are financing a car for 5 or 6 years but warranty is done in 3 that’s a problem especially if you are known to have a ton of issues. Honda and Toyota can get away with it because they are viewed as not having many issues.
I’m not even sure VW’s current problems stem from their poor reliability reputation. VW’s actual reliability issues were nearly 20 years ago. For the recent 15-20 years, they’ve been pretty average. Sure, Toyota has had them pretty solidly beat over that time, but other than that, they seem to be pretty typical compared to most brands.
That being said, none of their offerings seem very compelling. I owned a ’15 Golf Sportwagen TDI and it was a pretty niche product and thus compelling if you wanted that niche. Nothing like that exists any longer. The most compelling vehicles they offer are the GTI and R, which are two sides to the same coin.
The Taos, Tiguan and Atlas seem like utterly unremarkable vehicles wrapped up in VW’s corporate visual design language. So unless you love the design language, why are you buying it over almost anything else. They aren’t more fuel efficient. They aren’t cheaper to buy. They aren’t more reliable. They aren’t more likely to hold their value. They are another offering in a crowded space.
I’m not so sure at least in the US. In Europe things seem better for them. Atlas has been a huge problem. Many people went to Atlas for the looks and price then went back to explorer or similar. Many were lemon lawed. Other things like the interiors falling apart after a few years is also something people remember and has been a problem much more recent. When you ask many mechanics about planned obsolescence they will site vag cars as almost down to the year or mile. I’m not sure that has changed all that much.
I had a ’13 Jetta tdi it was fine when I owned it and was bought back but I was recently in one the interior didn’t fair well. Just from time and use.
In Europe they are the best selling brand / group by far.
Tennessee and Mexico don’t exactly scream quality. That might be part of their American problem. Though with the Atlas I’m not sure it was the factorys fault. Just a lot of problems that should have never happened. The Tiguan has sort have been into the good enough camp since it came out I just think they get beat out on pricing warranty and brand reputation by others. Last year some dealers were advertising the Jetta for $20k for that it’s not terrible. If they could get it to under $20k maybe $18k with a 7 year warranty they might have something.
Sorry Nsane, but the average new car buyer/lessee doesn’t think of fun, quirky cars when/if they think of VW. They think, “Hey, a German car that’s cheaper than a BMW or Mercedes.” And with Audi, they think that by getting an Audi, they’ll be “standing out” instead of getting a BMW or Mercedes “like everyone else”.
Remember that for 90% of people, a car is just a way of getting around. More people are excited about their favorite sports team having a winning season, eating at a fancy restaurant and/or having their partner’s naked body in their arms.
But that T-Roc Cabriolet gives me hope. Why can’t we have unique vehicles like that here? Oh wait, I forgot our automotive market being made up largely of soccer moms paranoid about their own children’s safety (not others’) and men who must constantly remind everyone how tough they are…
The T-Roc Cabriolet is dead and won’t live to see another generation…
“Get back to selling quirky cars”
Or as we call them in Europe, cars.
Beige Lease Machine…may I use this for a band name???
Only if you let me play lead guitar
I am old enough to remember when VWs were good cheap cars. Are VWs just overpriced now?
The issue is they’re as expensive as Toyotas and Hondas and more expensive than Hyundai/Kias…and they’re not as reliable as Japanese cars, as quirky as the Koreans, or as efficient as either. They’re in no man’s land and they only sell cars to aging brand loyalists right now.
IMHO they either need to out reliable/out efficient the Japanese offerings (impossible) or out quirk the Koreans. The second seems like the most sensible path to me.
Well said, I would also add they could be cheaper than both and get some customers back.
That’s my view as well. If I’m going to get a small, boring car to commute in, why would I get one perceived to be unreliable and not easy to work on, myself. My perception is based purely on anecdotes from the ’10s. I have no idea if VW has fixed their reliability but I don’t see enough on the road to consider changing my mind.
They don’t need to out quirk them, and probably can’t given quirkiness is a Korean specialty. They need to be German cars again!
Simple high quality interiors, excellent steering feel, a firm but not punishing suspension. Simple mostly analog controls. A lot of what made Volkswagens and German cars in general appealing was the quality mechanical feel they had, along with a sense that driving and cars should both be fun. That doesn’t require expensive parts, it requires careful tuning and attention to detail. Somewhere along the way all the German makes forgot what made them special, and buried their cars in needless complexity and unreliable electronics.
Funnily enough, in Europe it is the opposite. Toyota’s are as expensive as VWs and Hyundais are too boring.
VW annihilates them.
Terrifying.
Like how David’s MB did but he has to build an Atlas in his driveway.
Across Audi and the VW ev lineup just drop every other number or just go with even or odd numbers. Sell of off brands that end in and “I” (Ducati, etc.)
Why not just take everything on the MQB and drop it to just one badge for every type of vehicle. one sedan, one hatchback, one crossover, etc.
This is all just sarcasm but jebus there is a lot of overlap.
It’s all so fucked that being sarcastic about it actually kind of makes sense!
ANY form, illogical or not, of consolidation would be worthwhile.
I’m something of a traditionalist so I’ll say the left half:
https://live.staticflickr.com/7035/6427768507_1e27ef75ed_c.jpg
Why not eliminate half of VW’s super senior leadership’s compensation package instead?
If you cut it completely you would save €43 million euro in a €321.9 billion company.
Oh, well if it’s only 43million… They should probably just double the package and just lay off workers instead. Yeah, that sounds better.
I understand the orders of magnitude and what you’re saying. But I object to any scenario saying a number of executives are worth 0.1% the value of the entire company, and that it’s “small” so it doesn’t matter.
You missed a zero. Entire executive compensation is 0.01% of revenue
I get it, executives are paid way to much but that isn’t going to fix the underlying problem.
Man, they really missed the opportunity to call it the Model Wye. Wye is an electrical engineering term, pronounced the same, and longer, it’s PERFECT.
Unrelated, but we have now seen convertible crossover models from Nissan, VW, and JLR, all of which began to fall apart financially a decade after. Is the convertible crossover the automotive brand equivalent of a recession indicator?
S3XWye doesn’t suit Musk’s 15-year-old-at-the-back-of-the-classroom sense of humor.
Would anyone miss Audi if it disappeared tomorrow?
Not really. Maybe the Audi from 20 years ago but not the 2026 Audi lineup.
Yeah that 00’s car question from the other day had me remembering the S4 Avants, the good looking first gen S5, original TT.
Too much understeer. In both periods.
Nope. Audi has been a bit underwhelming for a long time now. Super boring.
I really liked the B9 A4/A5, but it was just replaced by a plasticky caricature of itself and the coupe and cabriolet are no more.
So I agree. Current Audi would not be missed by many.
I just drove yesterday (for quite a while) next to an RS6 Avant in Voodoo Blue (the bright blue, not navy). That’s an Audi that I would miss.
I think it is all but discontinued, so there is that.
I see far more Audis on the road in my area than VWs. One of my coworkers drive’s his mother’s and I repaired it, took it for a test drive and kinda liked it.
That being said, I drove Audis back in the 90s but switched to BMWs and haven’t looked back since.
Completely off topic, but, I want a used X3 with the B58. From all I read they’re pretty good. Am I in for a world of pain or are they a good buy?
Too new a BMW for me, lol. I’ve got a e46 convertible and a e83 X3, both with the M54 engine. Although I want to sell both and get a 640 with the B58. I think the late 2000s-early 2010s was a low point in quality and they’ve been coming back since.
Also, I prefer my German cars to be built in Germany (Austria is close enough for my X3) but X3s after my generation are build in South Carolina.
I work on my own cars, and of the German manufacturers I find BMW to be the easiest to work on.
Got it. Thanks for the reply. I too would prefer a built in Germany one. I would also do a lot of my own work, at least the maintenance and potentially some basic repairs. I’ve done a decent amount over the years, water pumps (not ones ran by timing belt), thermostats, shocks, brakes, belts, alternators, and of course fluids.
Chat GPT is saying the B48/58 X3s are pretty good, but, used German car scareys always creep in. But good ride, 0-60 of under 5 secs, and ability to tow some things sounds like nothing else on the road.
Same, but be warned that this hasn’t really been true of any new BMW platform introduced since the E65 7-series in 2002. They may still be more user-friendly compared to M-B/VAG of similar vintage, but BMWs are no longer designed with any consideration for owner maintenance, which used to be part of their ethos.
I had a e38 740iL and I would say that really wasn’t designed for owner maintenance, either. But I managed to replace the engine and transmission, (not at the same time) as well as a bunch of updates to the entertainment system (and I changed the shifter to a steptronic one.) I’m familiar with the BMW coding software and pretty handy with it as long as I can find the info online.
I’ve sworn off BMW V8s, which is why I want a 640 instead of a 650.
Oh yeah, V8 has never been BMW’s happy place.
VW’s been attempting “premium” in North America while delivering such Americanized product as the Atlas & Taos.
So, would anyone notice if VW disappeared from America and it was just Audi?
The peoples car. Let us go backwards with VW. An electric beetle variant a’la the Renault 5 for Europe, but give us the same look in an EREV, because America is big and our infrastructure sucks sand. Take the same platform and re-realize the Karmann Ghia. Yes a small sedan and a cabriolet. They all have to come in under 30K US. They all have to be painted in real fucking colors., but they are allowed black and white too. Reimagine the Jetta line as the CUV SUV variant on the above platform only bigger. (and give us a real Station Wagon too). And as much as we all appreciate the names of African nomadic tribes, get rid of the aesthete names for your cars.
Audi: RS and Quattro the shit out of whatever you are trying to sell. And yes have a big old sedan and a big old SUV as you will need the platform for the barge offerings in your corral. Spin off Lamborghini as an IPO and create an actual competitor for Ferrari. (Use all those extra engineers to actually do something besides over engineering simple cars) SEAT and SKODA? Upscale them for the US. VW means peoples car. People and broke, poor, stretched, financially insecure, and want a reliable appliance some panache.
Keep the working employees and cut the executive staff in half, making sure that all bonuses are a reflection of productivity and profit, not a golden parachute to be used when ypu have failed.
There I fixed VAG. Leave Porsche the F alone.
I doubt many in my area would. I would say VW should stick to the Golf/Jetta and a small crossover, and let Audi have the A6, A8 and larger crossovers.
Her?
Yes, because of the Allroad. Volvo already stopped selling basically the only other wagon on the market for under $100k.
Audi sold 1.6 million vehicles in 2025. What are you going to sell those customers instead?
Cater to whims of the rich, gray crossovers for everyone else!
Layoffs for employees, bonuses for executives!
Anything which starts with ID has to go immediately. VW attempting to carve out a space for electric vehicles hasn’t worked properly, mainly because the cars were poor.
The same for Audi – eliminate the e-tron subcategory and put more focus on the mainline cars.
Porsche can probably deal with cutting one of the two Macans, and making the Taycan and the Panamera the same car.
The Cupra sub brand can go away and be folded back into SEAT.
Skoda probably has one or two amorphous crossovers that can disappear.
This is exactly what I was thinking, along with cutting executive compensation packages. Take that money and put it into R&D instead so they can actually make something interesting, and they’ll turn around fast.
Executive pay is a rounding error in a company the size of VW. Should they be paid less – YES. However, that isn’t going to move the financial needle.
Maybe if the Tiguan/Terramar/Tayron/Q3/Kodiaq were all made in the same plants, it might make sense. But they’ve very little crossover, and are for the most part made in a separate facility. So they don’t even benefit from manufacturing scale/changeover.
That was sort of the genius of Ford blue. Separate out the bev and do direct sales. Most of your bev buyers want direct sales to begin with. VAG’s bevs do better in Europe but in the us people don’t trust them. You could get an id4 for practicality nothing a year ago but still not a ton leased or sold. The ones off lease just sort of sit there because no one wants to jump on that granade. The whole scout thing might be a good test for doing bev direct sales though a sub brand. If it works out maybe have seat direct sales small bev.
Like just for the Cupra and Seat thing.
Skodas are great though.
Cutting all their electric models simply isn’t possible in Europe and China. The wouldn’t be missed in the USA but the USA is also less than 7% of VW Group’s 2025 sales.
I’m not saying don’t build electric cars. Just don’t have weird and ungainly electric cars with no brand equity that people don’t want to buy.
People will buy EVs if they’re good – Renault for example is knocking it out of the park in Europe at the moment with their offering. They’ve leant hard into using the heritage of their brand to produce EVs people are excited about.
VW on the other hand gave the world the ID.Buzz (in development since 2002 and still disappointing).
We are in agreement on that. The ID.3 should have just remained the eGolf
As to sales – VW Group dominates EV sales in Europe with 26% market share. Stellantis is #2 at 10% and Renault doesn’t crack the top 5