VW to discontinue Arteon, focus on EV growth

Volkswagen has finally confirmed it will discontinue the Arteon large liftback and wagon, as it focuses on maximising profits in its electric transition.

The German automaker's low-volume flagship passenger model is in the firing line as it focuses on achieving a sales turnover of at least 6.5 per cent by 2026 as part of its ‘Accelerate Forward’ strategy.

This ends years of speculation clouding the Arteon's future, alongside the related Passat, which is now only available in wagon and Alltrack form in Australia.

The push includes simplifying the number of variants, reducing ‘red tape’, and optimising its two current key platforms – the Modular Transverse Toolkit (MQB) and the Modular Electric Drive Toolkit (MEB).

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VW brand boss Thomas Schäfer said it will focus on a “small number” of “genuine” core models to “reduce complexity and deliver higher profits” – suggesting the Arteon is just one of more victims to come.

This echoes previous remarks about the brand’s upcoming small EVs, estimated to cost around-$40,000, being profitable.

Meanwhile it underscores the uncertain future of the budget-friendly Polo city car amidst tightening Euro 7 emissions regulations.

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Less is more

Schäfer pointed to the upcoming ID.7 – the Arteon’s spiritual successor – having 99 per cent fewer configuration options compared to the seventh-generation Golf small car to boost margins.

“The program is the number one priority for the entire Board of Management. We must build new strength for the Volkswagen brand and position it robustly for future growth, which is why we are now getting an enormous concerted effort off the ground,” Schäfer said.

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“Achieving this in 2026 is very ambitious, but feasible if we pool our efforts. This will enable us to safeguard jobs, finance our future from our own resources and continue to invest in new vehicles and technologies, in the modernisation of our plants and in staff training.”

The aggressive business strategy coincides with the automaker’s electric transition to compete with Tesla and Chinese companies, such as Build Your Dreams (BYD), Saic Motor’s MG, and Great Wall Motors (GWM).

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When will the Arteon leave the stage?

It’s unclear when the Arteon will end its two-generation run, but previous rumours suggest it could be as soon as 2024 when the ID.7 electric sedan launches overseas, although not in Australia.

The Arteon liftback was first released in Australia in 2017 at a time when Kia’s hero Stinger was also arriving, while the controversial European-made ZB Holden Commodore was about to debut a year later.

In 2019, the carmaker relaunched the Touareg large SUV as its new upmarket flagship.

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Upcoming Volkswagen ID.7

Local Arteon sales were paused between 2020 and 2021, before a facelift revived it in 2022. Defying market trends, it even added a Shooting Brake wagon body style option. 🙏

As of the end of May 2022, only 2289 Volkswagen Arteon units have been sold in Australia since its launch five years ago.