The idea that Americans don’t want sedans is, in some ways, overblown. Many Americans do want a sedan. Many of the most popular vehicles in America are sedans. The catch is that people want affordable vehicles and they want options. Given a range of options, many previous sedan owners will opt for the convenience of a crossover, but not all of them.
Volkswagen should be able to take advantage of this, having an affordable car in the form of a Jetta and, once, having a nice-but-affordable sedan in the form of the Passat. But the Passat replacement we were supposed to get has been unceremoniously killed before it even got on the boat; this was a smart move by the company, even if it portends a murky future.
This will be another volume of The Morning Dump that embraces the uncertainty of the moment, as Audi and Porsche are grappling with the same underlying conditions and trying to make smart decisions. One possibly smart decision carmakers are coming around to is: “Hey, maybe we shouldn’t be advertising in the Super Bowl this year.”
CDK Global is a company that seems to only be in the news over alleged bad behavior lately and, right on cue, the company is now agreeing to settle a huge lawsuit related to screwing around with vendors.
The Volkswagen ID.7 Isn’t Coming To America And I’m Sorry For All 27 People Who Wanted An ID.7
“Pride goeth before destruction, and an haughty spirit before a fall.” – Proverbs 16
I am in an Old Testament mood this morning and, in particular, I feel very motivated by the King James Version of Proverbs. People think this version of the Bible was written by William Shakespeare. It probably wasn’t, but the language was definitely inspired by the same poetic style that permeates the Bard’s writing.
The above saying has been shortened to just “Pride goeth before a fall” in the modern tongue, but I like the full quote. Volkswagen was definitely haughty toward the end of the Piech era, and it led to, if not total destruction, at least a big fall.
Did Volkswagen learn its lesson? Not quite. It rushed to make electric cars and assumed everyone would just buy what they had to offer, even if what they had to offer wasn’t really competitive with the class-leading cars from Tesla. VW’s charging network was rushed into existence and had difficulty delivering a comparable experience to Tesla’s Supercharger network. This was another form of pretentiousness, though one tinged with a bit more desperation.
Focusing just on Volkswagen, the first non-compliance EV the company rolled out for the U.S. market was the Volkswagen ID.4, a totally fine crossover with all sorts of issues. It didn’t sell all that well. It then didn’t sell at all after an issue with its door handles.
Next up was the much-promised, long-delayed van. Jason reviewed the production ID.Buzz and found it to be a great idea with some important execution issues. The third vehicle was supposed to be the ID.7, a Passat-sized electric sedan. We reviewed it in 2023 in advance of a 2024 release. That 2024 release never happened as the company delayed it, citing a drooping demand for electric cars.
And now, according to AutoTrader.ca, VW has given up on the idea entirely:
The automaker initially planned to start selling the ID.7 in North America in the summer of 2024, only to delay its launch to a later, unannounced date. Now, VW says it is scrapping the ID.7’s North American launch altogether due to the overall downturn of global electric vehicle (EV) sales.
The decision was first reported by Guide Auto Web and later confirmed to AutoTrader by Mark Gillies, the director of public relations for Volkswagen Group of America. He added that, despite the ID.7’s cancellation, Volkswagen will continue to focus on electric vehicles as part of its core product strategy and that it will offer more EVs in the North American market in the future.
I love the idea of choice, but this is unfortunately sensible. I don’t think the issue is that it’s a sedan (the 8th, 10th, 11th, 21st, and 25th most popular cars in America last year were sedans). Given how crowded the electric crossover market is, an affordable EV sedan with good range might work. The BMW i4 is doing fairly well in this space, even if it’s a touch pricey.
On Europe’s more generous WLTP test, the car gets 621 km of range. This typically translates to around 300 miles of range on our EPA test, which is, at least, minimally competitive. And, sure, EV sales are not as explosive as they were. Still, I think there’s a place for an affordable EV sedan.
But this was never going to be affordable. The starting price, at best, was going to be $50,000, and wouldn’t qualify for a tax credit that might go away for leased cars. Making dealers support a car that has this many strikes against it is a tough business case and VW was not going to make it work.
To make things more complicated, on his first day on the job our new Transportation Secretary, Sean Duffy, instructed the National Highway Traffic Safety Administration to review and, probably, rewrite the country’s stricter fuel economy regulations. This move would take pressure off Volkswagen to sell more EVs and, potentially, allow them to focus on more profitable cars like the American-built Atlas.
Porsche And Audi Might Build Cars In North America
“Boast not thyself of tomorrow; for thou knowest not what a day may bring forth.” – Proverbs 27
Neither Porsche nor Audi builds cars in America, which seemed sensible in an era when cars could ship around the world without having to worry about too many onerous tariffs… assuming they weren’t trucks.
The greater Volkswagen Group loved building cars in Germany, which is logical for a German company that’s co-owned by a German state. All of this makes less sense now in an era of tariff threats. The old rules were that Germany could build in Mexico and import to the United States without much worry. Those are the old rules and no one knows, quite, what the new day may bring forth.
It’s why Volkswagen is at least considering bringing Audi and Porsche production to the United States according to Germany’s Handelsblatt newspaper:
The tariffs on car imports announced by US President Donald Trump are putting the VW Group and its subsidiaries Audi and Porsche under pressure. Both brands currently produce exclusively outside the USA and would therefore be severely affected by additional duties on imports.
As Handelsblatt learned from several people familiar with the background, the group is now considering setting up production for both brands in the USA.
Will President Trump follow through with his plans to tariff everything? Given the chaos of yesterday, it’s foolishness to presume he won’t. Volkswagen Group has a few options here, including a new Scout plant in South Carolina and Volkswagen’s Chattanooga facility.
Only Stellantis Will Be In The Super Bowl Nationally
“Where no oxen are, the crib is clean: but much increase is by the strength of the ox.” – Proverbs 14
When I was at the old lighting site we had a couple of years where we gleefully covered every single Super Bowl ad. This made sense then, but I couldn’t imagine doing it in 2025. It would be much easier because only Ram and Jeep will have any presence on the national broadcast according to AdWeek:
Ford, Audi, Honda, Hyundai, and General Motors are out. So are Kia, BMW, Toyota, and Volkswagen — four automakers that ran a spot in last year’s Super Bowl.
With less than two weeks to go, only Stellantis-owned sibling brands Jeep and Ram have announced plans to air a TV commercial during the broadcasted match between the Kansas City Chiefs and the Philadelphia Eagles on Feb.
First, of course, I embrace the conspiracy theory that the officials tanked the Texans (and Bills) so that Taylor Swift’s boyfriend could be in the Super Bowl. Go Eagles!
Second, this is super weird! As AdWeek points out, though, it makes sense. There’s a lot of confusion out there about the auto market this year and it’s not like anyone is going to pick up any points by trying to push an EV no one is going to buy. At the same time, Ram needs to do advertising to try and pick up some attention as part of the company’s, idk, 19th comeback in 24 years?
The ads will be made by Cramblin Duvet Advertising, who I hear does great work.
CDK Global To Pay $630 Million To Settle Dealer Data Case
“He that trusteth in his riches shall fall; but the righteous shall flourish as a branch.” – Proverbs 11
If you guessed that the $630 million CDK Global settlement I’m talking about relates to the company’s handling of a cyberattack you’d be wrong. The dealer software company, which was taken private by a private equity firm in 2022, is in trouble for something else dating back to 2018.
Tech vendor AutoLoop and other companies included in the settlement create apps for the dealers’ management systems for inventory management, repair orders, warranty services and other functions.
AutoLoop sued CDK in 2018, accusing it of cutting off access to auto dealer systems and driving up prices vendors pay to access data for their apps. A judge certified the case as a class action in July.
CDK chief executive Brian MacDonald said in a statement the company “felt it was time to bring this long-standing litigation to a conclusion” and that the settlement would have no impact on its business.
This is also separate from the $100 million settlement CDK Global paid last year to cover a class action by dealers who said they overpaid for the company’s products.
What I’m Listening To While Writing TMD
It’s a group “everybody is talking about” friends. It’s Bruno and the Heaters live at the 1987 American Music Awards. Man, that lead singer can really honk on bobo.
The Big Question
What should VW’s next product be in the United States?
I’m looking forward to the Jaguar superb owl ad
“Do you think we’re going to get to touch its little beak?”
“Depends what mood he’s in.”
“Come out to the coast, sing a song, have a few laughs…”
Re: sedan popularity and it’s gradual decline, the “style everything like a hatchback, but not actually make it a hatchback” trend definately plays a role. Steeply curved rooflines that cut into rear seat headroom and mail slot sized openings into trunks aren’t doing the segment any favors. Either make them 5-door hatchbacks or go back to a more rigid 3-box arrangement with a squared off formal roofline and a big flat decklid, either would be more useful than the half measures being made today
Yeah, wagon or sedan, pick one world. The egg shape that has evolved is ugly.
I am glad that Acura’s rebrand of the ILX included keeping the Civic Sport’s hatch. Hatches are good; they basically turn an Integra into a pickup with a tonneau cover.
I doubt the lead singer can remember this performance. Wish I couldn’t.
And VW needs to release a new Thing.
They’d screw up the launch by annoying everybody with unsolicited pictures of it.
And take 10 years to bring it to market.
VW needs an identity here in the states. What kind of buyer is the VW buyer? What kind of cars are VW’s? They aren’t quirky or beautiful or exemplary in reliability or performance so why VW? Once they answer that question they can start putting vehicles into that mold.
This. I vote that they lean into applying the Buzz styling across their lineup.
I’m sure there’s a deck chock full of personas illustrated by stock photography
At one time they were the lower cost Euro option that gave the false impression of being somewhat bespoke.
At one time they made drivers cars that didn’t give the impression that their owners were pretentious assholes like their badge-engineered upscale upgrades were or their Bavarian competitors were.
Now they are Toyota Camry wannabes except for that minor detail of reliability.
I loved my 70s and 80s Volkswagens. I just don’t think I would ever buy one now given that if I wanted a boring mediocre crossover I would shop from another manufacturer.
When I think of VWs I sense there is a people’s car, an economy car, that allows you to live in the aspirational world of superfluous, pricey maintenance. Remember the TDIs needing timing belts changed every 40k miles?!
Despite their total mediocrity they, nonetheless, just keep on being here.
FYI, I don’t remember TDIs that needed timing belts changed every 40,000 miles, because they never existed. 100,000 miles was the interval
https://forums.tdiclub.com/index.php?threads/40k-timing-belt-change.30895/post-299058
Now that the EPA is a just a vacant building with the lights left on. Screw it, bring back the TDI! And not the common-rail. Just dust of the collection of ALH’s hidden somewhere in Wolfsburg around 2004. And put that sucker right into Taos or whatever. In fact, go one step further and just remake the MK4.
Forget about the Wolfsburg Edition. Now we’re all about that Continuation Edition.
I think there are probably fields of 2015 or so TDI’s available. I recall their being a fire sale on them at first in like 2016, and then their were photos of them rotting in abandoned mall parking lots. I recall there were wolfsburg edition Passats available at that time as well. It was solely a trim level and not much to write home about, but damn it was tempting to get a TDI with a manual 6 in a Passat. but the ones I do find these days are strangely about the same I paid new for the SEL 2.5 from 2013.
never mind ;asdhijksdhdjkgfhsjkdfjksdhfjksdf
At this point, VW would probably be more successful and profitable selling sausage (p/n 199 398 500 A).
Don’t forget the ketchup lol
https://media.vw.com/en-us/releases/1816
I got my free bottle!
Thanks Autopian!
“I do not think it means what you think it means.”
Perhaps the ID7 could be sold as an Audi.
Audi already makes cars in Mexico, and Porsche even makes cars in Malaysia, so they can make them there as well as the US factory in TN.
List of Porsche locations
I have no idea how to add images, sorry
https://content-hub.imgix.net/4d6g40B9L2jxigypzAYjSq/0945b75269acd5721f2fa788b2bbf07f/where-20are-20porsche-20cars-20made-201.jpg
According to a quick google search, Mazda sold more units than VW last year in the US, the brand that is very small compared to the monster that is VW and resources available to develop new vehicles. Way to go Mazda!
With Cupra coming to the US and Scout in process, whats left for VW?
VW’s next product should be the Scouts and fortunately that’s what’s happening.
But… they’re not Volkswagens.
And that’s precisely why they’re appealing
There’s a wonderful line I remember from Car Talk, where Ray Magliozzi was explaining why sales of the VW Fox were so low. He said: “Volkswagen introduced the Fox because they wanted to sell an affordable compact sedan. They didn’t realize that they were already selling four.” VW seem to have a perennial problem with a lack of differentiation between their core product lines. Maybe it’s a cultural thing, where Germans appreciate and expect micro-variation, like BMWs 1-degree increments in seat heater temperature. The ID.7 just isn’t different enough from the ID.4 to really justify bringing it over to us unwashed Yanks who will just see it as more money for slightly less car.
I grew up listening to Click and Clack every weekend.
“Don’t drive like my brother!”
“Don’t drive like MY brother!”
Ray still writes a Q&A column once or twice a week:
https://www.cartalk.com/
I got all my press cars from John “Bugsy” Lawlor. I still chat with him from time to time. His stories are so good.
Gee, if only there were a website tailor made for sharing good car-related stories… 😉
I don’t want to get murdered – I *DID* jump in with the Hooniverse fellas to re-launch their podcast… Have fun! Podcasts – Hooniverse
I own an expensive sedan and I feel like more people would buy them if there were more compelling options, but the auto makers have decided building crossovers is easier thanks to antiquated regulations (they’re not wrong) so here we are. And as a twice over GTI owner, I feel like VW has dropped the ball on just about every one of their current offerings (Golf R aside).
The Golf R is still let down by dealer markups and the dystopian infotainment system, though. I owned a MK7.5 GTI and have driven a MK7 R, and I just can’t imagine choosing a Golf R over a GR Corolla or CTR ay this point. Some people are (a gentleman here whose screen name is Kyree if I recall correctly just bought one) are, but now that the GRC has an automatic option that’s apparently quite good I’m really not sure what the Golf R has over it unless your ultimate goal is subtlety.
No images in comments means you’ll just have to imagine the “four stages of Vince McMahon” meme here:
-Paying a markup
-In 2025
-For an economy car
-It’s a VW
“$55,000 for a Golf R”
I can literally go find a Blackwing for that much money
“Fine pay MSRP for a Golf R”
For the same price I can get an S3 that has the same powertrain and actual buttons
“What about a little bit off?”
I can get a Toyota with similar power, a cooler engine, and a similarly advanced all wheel drive system for less. Oh and they still offer it in manual.
“BUT THE GOLF R IS SO REFINED”
….why would I want my hot hatch to be refined?
I love sedans, I’ll probably always have one. Bringing an EV sedan to market that is overpriced with poor range and probably a terrible interface would be stupid, so kudos to VW for not doing that. I guess?
If Cramblin Duvet can get Mort Crim for the ad, I’m in. Especially if he goes off script.
I bet Mort has thoughts about Saltillo!
Oh Bruce Willis but not the one I was expecting, nice!
VW’s next product should be an suv with a hybrid, I think they’re coming with the Tiguan and Atlas. Also an ID.3 with a Beetle Body, only a 4-door Beetle body, with a frunk.
An apology note to everyone unfortunate enough to have owned one built in the last 35 years.
Insert Judge Smails “well, we’re waiting!” GIF here
cotd
“The idea that Americans don’t want sedans is, in some ways, overblown. Many Americans do want a sedan. Many of the most popular vehicles in America are sedans. The catch is that people want affordable vehicles and they want options.”
There’s also such a lack of choices, and even more of a lack of competitive ones. If you want a “big 3” manufacturer, you have can get an non-competitive 2025 Malibu until stock is gone (since they stopped production in November), or a Cadillac.
At the Detroit Auto Show, the Kia K4 seemed like the first really nice entry level sedan that I’ve seen in a long time. Nearly everything else feels really outdated to me. The reliability of the Kia engines in the past would give me some pause though.
I’m shocked by how few manufacturers want to compete in this segment anymore. Gone are the days where most companies think long term enough to court entry level buyers with the hope that they stay with the brand for many more purchases in their lifetime.
They still do, the entry level product is just a subcompact or compact CUV instead of a sedan.
The mistake is thinking about “number of customers who want a sedan”, rather than “number of customers who want a sedan so badly they wouldn’t buy one of our CUVs instead”, which is a much smaller number.
True.
As much as I wanted the ID. VIZZION (the ID.7 wagon), I was not keen on the ID.7 sedan because of the body type and it’s low, swoopy looks. For a business case, it seemed weak when looking at how something like the IONIQ 6 (not a fan of how it looks) is doing compared the IONIQ 5.
That is exactly what I want! A wagon, an EV, gets decent range (won’t be going on long road trips with it anyway), can go to Costco for the bi-monthly haul, can fit 8ft fluorescents from Home Depot, etc.
Undoubtably, the Cramblin ad will focus on the workers at the Ram plant with their anthem song:
Hello, hello, good morning
Horns is blowing
And I’m pissing off the neighbors
Whether homegrown or imported
We feeling shorted
Cause we waiting on our paper
What does VW need here? An ID Buzz that’s $20k less expensive. Golfs, GTIs, and Rs with manual transmissions again. A new generation Jetta. Then finally, a new EV Beatle and Beatle Cabrio
Bring back the Alltrack and Cabrio Golf too! Make it the fun brand it was.
The Rivian R3X
You’re not wrong
That would probably be the most likely way I would buy a VW in the future, unless they bring back the alltrack as a relatively cheap EV