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VW to drop Passat for ID.5 in the US

3K views 29 replies 21 participants last post by  Avus 
#1 ·
https://www.wardsauto.com/vehicles/passat-way-out-vw-s-chattanooga-plant

Passat on Way Out at VW’s Chattanooga Plant
Volkswagen says the Tennessee plant will launch production of the ID.4 in 2022, dividing capacity with the Atlas and Atlas Cross. U.S. production of the Passat ceases in 2023 and it will no longer be offered in the country.

Greg Kable | Nov 19, 2020

Volkswagen says it will cease production of the Passat at its Chattanooga, TN, plant and will divide capacity between the ID.4 battery-electric vehicle and the gasoline-powered Atlas and Atlas Cross midsize SUVs.

Production of the ID.4 launches in 2022 and will reach full capacity in 2023, when Passat output ends.

Until the ID.4 begins rolling out of the Chattanooga factory, the BEV will be imported from VW’s Zwickau plant in Germany.

The automaker is investing up to $800 million in the expansion of its Chattanooga plant in readiness for the ID.4. To free up capacity, Volkswagen plans to discontinue U.S. production of the Passat, which will no longer be offered in the country.

“We’ve made a decision to cancel the Passat for the U.S. The sales trend is very firmly in favor of SUV models, as indicated by the success of the (Chattanooga-built) Atlas,” VW CEO Ralf Brandstätter says.

Despite the end of U.S. sales of the Passat, Brandstätter confirms the automaker is pushing ahead with the development of a ninth-generation Passat model for other markets, including Europe and China, where it is to launch in 2023.

VW, meanwhile, plans to launch sales of the the ID.5, a production version of the German automaker’s earlier ID. Crozz Coupe, next year. The BEV will be produced in Germany and China and will be sold in Europe and China.

Like the ID.4 it is planned to be sold in standard single-motor, rear-wheel-drive guise, with VW confirming a more sporting GTX-branded ID.5 performance model with dual electric motors and all-wheel drive will be added to the lineup by the end of 2022.
 
#3 ·
True.

It seems Passat production in Tennessee will end to make capacity for ID.5 production, but they're implying for export.
And there won't be a next gen Passat for the US at all.

But the ID.5 could still be sold here - who knows at this point.

Thread title fail.
 
#4 ·
I stopped by the Chattanooga factory on Saturday to see all the construction as they get ready for ID.4 production. I was expecting to see a new building, construction cranes, etc. but nope there was nothing. Also the area where all the finished cars were parked was almost completely filled with Atlas/Cross, barely a Passat to be seen if at all. I left asking myself where would they find the room to build the ID.4 and what's the future of the Passat if production is almost naught. Welp, this article answers all that.
 
#7 ·
This just gives me the impression that VW is giving into American market demand like many others and ditching cars and selling more SUV's for the time being. The electrics will come eventually but it's not going to happen over night. Right now the market is still ICE friendly.
 
#10 ·
Looks like VW made a good call putting minimal investment into the 2020 Passat. Slapping new body panels on the ancient Chatt'nooga Passat was probably far cheaper than engineering an all-new one for segment that's on life support. The Koreans will probably the only sedan survivors.

I don't see why they won't sell the ID.5 here, since it will only cost a few bucks more than the ID.4 and can be assembled on the same line.
 
#14 ·
As a VW salesperson, I’m not surprised at all about this report. We actually received news that 2022 would be the final model year for the U.S. Passat about two months ago.

The family sedan market has almost entirely dried up over the past year, and despite VW’s rather expensive investment to significantly refresh the NMS Passat for 2020, it’s hard to mask the fact that it’s an 8 year old platform which lacks many of the more advanced technology found on the MQB models. On average, we’re lucky if we sell one or two Passats a month at my high-volume dealership. We’re seeing most of our Passat customers move to the Tiguan and Atlas. By and large, the bulk of the Passats that we do sell are to those aged 80 and up. Personally, I sell more Arteons than I do Passats, despite the significant price delta.
 
#21 ·
It makes perfect sense, as the segment is shrinking and their slice of the pie was never that big to start with, but it's also sad. A Passat has been sold here under many different names since the original version, marketed as the Dasher in the U.S.

That's a 46 year run.
 
#22 ·
LOL. Typical. They gave the most half-assed investment into a ~8 year old car and then surprisedpikachu.jpg it didn't sell! Wow! Who could've known it wouldn't leave the Camry/Accord dead in the water! Guess everyone wants SUVs now wow, and what a coincidence our margins are nice and fat on those, too bad for the suckers who wanted sedans!

I seriously do not understand what anyone really sees in VW these days anyway. They went from offering a nearly full European lineup with some made-for-North-America enhancements to offering Chinese styled crap at the same price.

I can almost excuse this strategy if at least they kept the Golf Wagon family, it sold really, really well here in Canada as I'd see at least 2-3 a day which is quite a lot for any VW. Hell, I saw more wagons than Jettas, even Alltracks too. But no, take this dingy Chinese compact SUV instead..Pathetic :facepalm::facepalm::facepalm:
 
#23 ·
LOL. Typical. They gave the most half-assed investment into a ~8 year old car and then surprisedpikachu.jpg it didn't sell! Wow! Who could've known it wouldn't leave the Camry/Accord dead in the water! Guess everyone wants SUVs now wow, and what a coincidence our margins are nice and fat on those, too bad for the suckers who wanted sedans!
LOL, VW doesn't sell 1/2 ton pickups either. Not every brand has to sell every segment. Seems obvious that they planned to eliminate the Passat in North America, resulting in the "half-assed" investment, not the other way around.

VW has Chattanooga and Puebla to supply the bulk of the inventory for this market. All decisions have to do with maximizing the future revenue and margins from the most efficient use of these two plants. The Passat doesn't fit in with that.
 
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