Volkswagen’s EV future on hold until 2026

1 month, 1 week ago - 30 January 2025, autoblog

2025 is going to be a rough year for Volkswagen as the German automaker doesn't plan to add any new EVs to its lineup.

It’s no secret Volkswagen had a rough 2024, and according to Bloomberg and Fortune, 2025 isn’t shaping up to be much better. The German automaker won’t release a new EV until 2026, so what we see right now is what we get for the coming year. That could put Volkswagen in dire straits, especially since the German automaker struggled in China as EV adoption trended upward.

Volkswagen is struggling in China’s EV market
2024 was full of issues for Volkswagen, with unions striking due to budget cuts and the threat of factory closures looming. Fortunately, VW was able to come to an agreement to cut costs and keep production facilities open when all was said and done.

Now, there’s a new threat hanging over their head as the German automaker isn’t bringing any new EVs to market this year. That’s not good news, especially since VW is struggling to compete against Chinese competitors, like BYD and Xiaomi, in the world's largest auto market.

“For the next year or so, VW is forced to sell old technology to new customers,” said Matthias Schmidt, a German automotive analyst. “That’s going to be difficult.”

Currently, the Volkswagen ID.4 and ID.Buzz are the only two EVs Volkswagen offers in the United States. At the ID.4’s launch, the electric SUV was expected to offer true competition to top makes like Tesla. That hasn’t really panned out that way for the ID.4 and the ID.Buzz is more of a niche vehicle.

The 2024 Volkswagen ID.4 and 2025 ID.Buzz start at $39,735 MSRP and $59,995 MSRP, respectively.

“For the next year or so, VW is forced to sell old technology to new customers,” said Matthias Schmidt, a German automotive analyst. “That’s going to be difficult.”

The 2024 Volkswagen ID.4 and 2025 ID.Buzz start at $39,735 MSRP and $59,995 MSRP, respectively.

Unfortunately, the VW-XPeng EVs won’t be available outside of China. Instead, Volkswagen is working on the revived Scout brand, which will include the Terra and Traveler, both of which will be sold via a direct-sales model. Production of those models isn’t scheduled to begin until 2027.

Volkswagen also plans to bring the smaller ID.2 to some markets in 2026, but that model isn’t likely to come to North America either.

Volkswagen Group is investing $5.8 billion in Rivian
Back in November, Volkswagen Group announced plans to co-develop a new architecture and platform for future vehicles with none other than Rivian. According to German publication Spiegel, VW plans to invest $5.8 billion in the California-based automaker by the end of 2027.

The EV startup will play a key role in designing Volkswagen Group’s next generation of EVs. Currently, VW vehicles use up to 100 control units, but with Rivian’s help, that number could fall to as few as seven.

The Porsche K1 SUV and the next-generation Volkswagen Golf will be among the first models to utilize the new architecture. Volkswagen also plans to implement the updated tech in the Scout Terra and Traveler models.

Final thoughts
Yikes! After Volkswagen’s EVs failed to take off in China last year, the German automaker is turning to a Chinese manufacturer as a solution. Truth be told, that’s a solid play, but it’s a rather limited one since none of the models produced as a result of the joint venture will be available outside of China.

Between VW’s Rivian partnership and the launch of the Scout brand, the German automaker is certainly shoring up its weak points. Hopefully, the Rivian partnership will be fruitful, but there’s one potential problem. While VW’s EVs are expected to launch at around a $45,000 price point, Rivian’s smaller R2 and R3 could end up as direct competitors. One thing is for certain: watching this series of events play out has been interesting and it looks like that won't change anytime soon.