Volkswagen, as a company, was founded in 1937 by the German Labour Front, and the very first car it made turned out to be such a huge success, few cars have managed to outsell it. The much-loved and oft-modified Beetle was Adolf Hitler’s vision of a people’s car, one that could be afforded by any hardworking German, and even the name Volkswagen meant people’s cars.
Today, VW’s biggest market is China and 40% of its profits come from there. Meanwhile, its run in the US, Canada, and other European countries; has been running foul ever since the diesel emissions scandal hit it in 2015. The US and Canada imposed fines on VW and had all the affected vehicles recalled, plus EPA slapped them with a fine as well.
To add to it, they were accused of collaborating with the dictators in Brazil, offended many by the use of a certain slogan which was deemed Nazi, and finally, a 2020 commercial was also dubbed racist, for which VW later apologized.
There are still plenty of VW models in the US – Jetta, ID.4, Tiguan, Golf, GTi, Atlas, and the Arteon. But the news is that the Volkswagen Passat is finally ending its run in the US and Europe. So, what is the reason behind the withdrawal of this successful nameplate?
The History Of The VW Passat
The Volkswagen Passat is a group of large family cars that VW has been making and selling since 1973, rather successfully. It entered North America in 1974 as a five-door station wagon called the Audi Fox, and as a four-door sedan called the Dasher. Rather confusingly, for the next generation, the Passat was renamed Quantum, and it was only in 1988 that it was finally dubbed the Passat.
In 2011, VW changed the platform of the Passat for North America, and called it the NMS, as in the new midsize sedan. This differs from the platform of the Passat sold in China, and the MQB platform of the model sold in Europe as well, making the Passat a model available on three different platforms.
In 2019, the new Passat entered its second generation in the US, floated as a 2020 model with better features, safety, and tech than before, even if the engine was a carryover. Only now, in 2021, news has come that by 2023, production of the Passat will cease, and not just in the US.
The Passat Is Being Discontinued In The US
For now, the VW Passat is made in the VW plant at Chattanooga, Tennessee, which also makes the Atlas as well as the Atlas Cross Sport. With Passat’s production getting over, the plant will now shift to making the ID.4 electric crossover from 2022. All of this not part of VW snipping its wings in the US but actually spreading them wide, as part of an $800 million expansion.
The reason is simple, sales of the Passat in the US have been drab for a while, with less than 15,000 of these being sold in 2019. There is only so much space for a sedan in the American market, and most of it has been taken up by the Honda Accord, the Toyota Camry, and the newly refurbished Hyundai Sonata and Kia Optima. The Passat was being edged out by the competition, and the USP of this car was limited to being spacious and safe. But then again, so are most mid-size sedans in the US today. Rather than continuing to make a car that is best described as a sales laggard, VW is downing the shutters on it, and moving to better and quite literally, greener pastures.
The Passat Is Over In Europe Too
According to various media reports, the Passat is on its way out in Europe as well, by 2023. The year of discontinuation may be the same, but the reason for Europe is slightly different than the one for the US.
VW had planned to move production of the European Passat from Germany to Turkey for the next generation, but the Syrian conflict that shows no sign of abating has forced VW to change its plants. Production will now be shifted to Bratislava, Slovakia, and there’s a €1 billion investment right there.
While the European Passat runs on a superior MQB platform, the decision to end it too has been made, only, it’s the sedan that’s ending. The good news is that the Passat Wagon will continue to be made and sold in Europe because if it sells well, it ain't broke…
The thinking here is simple, the Skoda Superb and the VW Passat cannibalize each other’s sales, so it makes sense to keep the better-selling car alive and well, chopping the runner-up off the block to make for overall better sales.
That said, with SUVs, crossovers, and electric vehicles becoming a world trend, the days of the sedan are limited. Period. Although, the Chinese Passat is alive and kicking for now.
Sources: TheCarConnection, Motor1