Volkswagen Announces Price Increases for Gas and Diesel Models in Germany

Volkswagen (VW) has recently informed its German dealers about upcoming price increases for its gas and diesel models. These price hikes, ranging from 2.1% to 4.2%, will take effect on September 12, 2024.

Financial Challenges Lead to Price Increases

In an effort to address its financial challenges, VW has decided to raise prices on its internal combustion engine (ICE) lineup. The company is also introducing higher prices for optional equipment, including sunroofs, spare wheels, upgraded infotainment systems, and head-up displays.

VW’s decision to increase prices comes at a time when the company is facing financial hurdles and considering potential plant closures in Germany due to sluggish car sales.

Impact on Model Prices

The price increases will affect all ICE-powered models for the 2025 model year, except for the Polo small hatchback. The recommended retail prices will rise from as little as €490 ($541) for the Taigo crossover to as much as €2,490 ($2,790) for the flagship Touareg SUV.

The VW Golf compact hatchback will see the highest price increase, with a 4.2% hike amounting to €1,150 ($1,270). Customers have until September 11 to place orders at the current prices before the new catalog takes effect.

Chart of Price Increases

Reasons Behind the Price Increases

VW has not officially stated the reasons for the price increases. However, it is believed that the company’s ongoing financial struggles have necessitated these adjustments. In a previous interview, Achim Schaible, Chairman and Spokesman of the Board of Management of Volkswagen Germany, stated that price increases were not necessary. The current situation, however, seems to have changed.

This is not the first time VW has raised prices on its ICE-powered models in Germany. Similar increases were implemented in spring 2023, making VW vehicles less affordable.

Sources: Volkswagen, kfz-betrieb