Update (6/14/23): Volkswagen officially announced that the Arteon will be discontinued in a bid to boost profitability by eliminating low-volume models. VW has not confirmed when the Arteon will end production. The car remains available as a 2023-model-year vehicle.
Large changes are in store for Volkswagen, which is hurling toward an all-electric future faster than most of its rivals. VW’s transition toward EVs means that consumers are running out of time to purchase one of the brand’s gas-powered cars. Things are especially bad for the Volkswagen Arteon, which is VW’s flagship sedan. Automotive News reports that the Arteon will be dropped from VW’s lineup by 2024.
It's not a secret that VW is looking to focus on EVs and with the recent passing of the Inflation Reduction Act that requires EVs to be built in North America to be eligible for the federal tax credit, VW is shifting its focus to the future. So the days for gas-powered cars with a VW badge are numbered. The Arteon appears to be the first of VW’s gas-powered vehicles to be getting discontinued, which shouldn’t be all that surprising because sales of the vehicle are terrible and the segment that the Arteon competes in is rapidly shrinking.
The Arteon arrived in 2019 as a competitor to vehicles like the Buick Regal Sportback and Kia Stinger and was a successor to the CC. It was VW’s take on an affordable version of sportback models from Audi, BMW, and Mercedes-Benz. When the Arteon arrived, it reminded us a lot of the Phaeton from the 2000s. The Phaeton was VW’s attempt at a luxury vehicle with components from much higher luxury brands in VW’s portfolio like Bentley and Audi. Volkswagen sold the Phaeton from 2004 to 2006 and for most people, it was seen as a failure for being far too expensive, having far too many problems, and costing far too much to operate.
Despite being far more affordable than the Phaeton, the Arteon has struggled to gain traction in the U.S. Since its introduction in 2019, the Arteon’s best year saw VW sell 5,537 units of the vehicle in 2021. From January to June 2022, VW has sold less than 170 Arteons this year. The Kia Stinger, which is the Arteon’s most obvious competitor, had its best year in 2018 when it accounted for 16,806 units sold. Having a vehicle that draws in less than 5,000 units in sales annually isn’t worth keeping around, especially when SUVs are so popular.
While Volkswagen will discontinue the Arteon, it’s not giving up on the body style. Auto News claims that the Arteon will be replaced by the ID Aero. The ID Aero will reportedly utilize the MEB architecture and have streamlined aerodynamics to have more range than the ID 4 and ID Buzz. The ID Aero will be similarly sized to the current Passat and is expected to arrive in 2024, just as the Arteon is being pushed out the door. Interestingly, the ID Aero is expected to be imported from Europe and, therefore, won’t be eligible for the federal tax credit.