Volkswagen News

Electric car buyers in Australia are facing a new concern.There are demands for increased responsibilities for car manufacturers to correctly state how long EV batteries should last, according to a report from the Australian Automotive Dealer Association (AADA). The report warns that buyers could face a “wave of litigation” when EV batteries need replacement outside of warranty as their cost could exceed the vehicle’s remaining value.One particular dealer said Chinese-built cars are “not holding their charge” or are “blowing up on fire”.The report suggests manufacturers should be required to define acceptable battery thresholds or disclose the expected degradation of a unit. Most batteries carry an eight-year or 160,000km manufacturer warranty, but dealers are looking for greater clarity on what this means.The new initiative would require manufacturers to provide clear indicators of acceptable battery performance.A battery would be considered to be performing at an acceptable level if it has at least 70 per cent of its total capacity remaining after more than eight years, for example. The EV driving range debate continues to rage on and it remains a substantial roadblock for buyers considering switching from petrol- and diesel-powered cars. Many EVs now boast more than 500km of driving range, but people have also started to recognise that most journeys do not require significant amounts of driving. The convenience and accessibility to home and public charging have also increased the convenience of EVs. Reported driving range figures on a particular car can vary greatly depending on the testing cycle used. The Worldwide Harmonised Light Vehicles Test Procedure (WLTP) is viewed as the most accurate standard available. Its testing figures often come in noticeably lower than the older New European Driving Cycle (NEDC) and the even more generous China Light-Duty Vehicle Test Cycle (CLTC).As much as these systems do their best to mirror real-world driving, they can never be truly accurate because of the different ways people use their cars.Consumers often experience range anxiety or disappointment when EVs fail to achieve the range advertised in brochures, according to AADA. AADA has put forward a series of reforms for the Australian Consumer Law to adopt, but it remains to be seen whether any of these will make their way into legislation. 

Volkswagen has revealed a new electric counterpart to the T-Cross small SUV.The 2027 Volkswagen ID.Cross is based on the MEB+ dedicated electric platform like the ID.Polo, Cupra Raval and Skoda Epiq.While this new electric SUV can be ordered already in Germany, it’s unclear if or when it will be coming to Australia.“The Volkswagen ID.Cross is currently being assessed for the Australian market as part of our ongoing product planning activities,” said a Volkswagen Australia spokesperson.“While we recognise the interest in the vehicle, we are unable to confirm local availability or timing at this stage.”All versions of the ID.Cross are powered by a single, front-mounted electric motor but there are three different power tunes. These are 85kW, 99kW and 155kW.There are also two battery packs available, 37kWh and 52kWh. The latter offers up to 427km of WLTP-claimed range.Both battery packs can be AC charged at rates up to 11kW, but the 37kWh battery can be DC fast-charged at rates up to 90kW and the 52kWh battery can be DC fast-charged at rates up to 105kW. This allows for a 10 to 80 per cent charge in 23 and 24 minutes, respectively.Vehicle-to-load (V2L) capability is available as standard across the line-up at rates up to 3.6kW. It’s available with the use of an adaptor that plugs into the external charge port.On the outside the ID.Cross’ design language is cohesive with the ID.Polo. There are available matrix LED headlights, a rear LED light bar with 3D elements, illuminated VW logos, as well as black-painted pillars to create the illusion of a floating roof.It measures in at 4153mm long, 1794mm wide and 1581mm tall, with a 2601mm wheelbase. This makes it 45mm longer, 34mm wider and 2mm shorter than the T-Cross. The wheelbase is also 38mm longer.Inside there is a 10.25-inch digital instrument cluster that, like the ID.Polo, offers a view mode that emulates the first-generation Golf’s gauges, as well as a 12.9-inch touchscreen multimedia system.There’s also a panoramic glass sunroof with an electric sunblind, fabric-covered dash panel, piano-key shortcut buttons under the touchscreen, an available 10-speaker Harman Kardon sound system, heated seats and steering wheel, as well as keyless entry and start.There are a total of five seats, 475 litres of boot space with rear seats upright, as well as a 25-litre frunk.With the reveal of this ID.Cross, it’s unclear what this means for the combustion-powered T-Cross which was originally revealed in 2018 and launched locally in 2019. It was last updated in 2024.

Volkswagen’s woes seem to be ever-growing in the 2020s, but one aspect of its production is likely to get a huge overhaul in an attempt to cut costs.Volkswagen’s CEO Oliver Blume raised an idea during the company’s first-quarter earnings call on April 30 that has seemingly started to take hold - building its China-only models in its underutilised German plants.As part of what Blume has called “the most comprehensive realignment in the company’s history”, Volkswagen will not only cut around 50,000 jobs on top of about 37,000 already cut since 2024, but will also consider a couple of ways in which it can lower production costs while utilising its connections with China.A report from Automotive News Europe says insiders have flagged three possible moves VW might make to fill production lines and improve the company’s efficiency.The first, and apparently the preferred option for VW Group’s top brass, is to use VW’s incoming China Scalable Platform (CSP) for global models, though the platform isn’t set to underpin models in China until 2028.Volkswagen has joint-ventures in China with Xpeng, SAIC and FAW and could lean on those in the meantime. The potential plan has reportedly raised concerns from VW’s workforce representatives, who say the brand’s Wolfsburg engineering teams should handle development of new cars.Another possible move is for the China-only VW ID Era 9X to replace the VW Touareg which just ended its production run in Europe.The range-extended electric SUV is a six-seater built specifically for China, developed with its joint-venture partner SAIC. It has become relatively popular compared to VW’s other electrified models, and reports say executives like the idea of it filling the large-SUV-sized gap left by Touareg in Europe.Another, less likely possibility is for VW to build XPeng models in its German plants, given its 5 per cent stake in the Chinese brand and the fact the XPeng G6, G9 and P7+ are imported to Europe.Automotive News Europe says insiders don’t see this as likely, reporting that executives see no value in becoming a contractor for a Chinese EV brand.Volkswagen is also expected to massively cull its global model line-up, with German newspaper Bild reporting a wide range of cars from all of its brands won't survive to another generation.

Facing intense competition from emerging Chinese brands, the impact of US tariffs and increased manufacturing costs in Europe, the Volkswagen Group’s current financial trauma is well documented with a minimum cut of 50,000 jobs (likely 100,000) by 2030 and closure of four production plants in Germany already flagged.And now, as part of its Future Plan presentation, the Group’s executive board has said, “The (group) model lineup will be gradually concentrated on the most attractive market segments and streamlined by up to 50 percent; offering complexity will be reduced by up to 75 percent.”Which means key models currently sold by brands including Audi, Cupra, Skoda, Porsche and VW are set for early discontinuation, the latest by 2030, with the number of available options slashed by three quarters and annual production capacity dropping from 10 to nine million vehicles.Question is, which models are headed for the chop first and German publication Bild believes it has the inside scoop with a "concrete list” of 10 cars headed for extinction.Here’s the Bild VW Group product hit list.Audi: The Q5 Sportback and Q6 e-tron Sportback are unlikely to be replaced. And interestingly, even though the Porsche Taycan is marked for extinction (see below) its Audi e-tron GT twin under the skin isn’t.Cupra: The list marks the Cupra Raval (which hasn't even launched in Australia yet) as headed for the exit after a single generation.Porsche: In unsurprising news the underperforming Taycan is set to retire after the current model reaches the end of the road and the internal-combustion (ICE) Cayenne Coupe is gawn.Sadly for sports car devotees Bild’s mail is that even though Porsche’s ‘strategic realignment’ from late last year pointed to internal combustion power for flagship versions of the 718 Boxster and Cayman, that plan is kaput with the roadster and coupe again lining up as EV only.Skoda: The Bild report puts the Skoda Fabia small car on the chopping block, although there’s no mention of its closely-related Seat Ibiza and VW Polo siblings.Volkswagen: The Jetta compact sedan, now primarily sold in North America, and the Taos crossover-style SUV, currently offered in global markets including North America, South America and Russia (and marketed as the Tharu in China) look unlikely to make a next-gen iteration.No mention of Bentley, Bugatti, Lamborghini or Seat although Bentley has already shelved its plan to go pure-electric by 2035 and Lambo’s put production of its first EV firmly on the back burner.Bild estimates VW Group savings of up to €6.5 billion (~$10.7 billion) by 2031 by finishing up these 10 cars but even that’s far from a 50 per cent reduction in the across-the-board model count.Stay tuned for more VW Group model obituaries surely coming soon.

Volkswagen is about to make some big changes that could have knock-on effects for Australia.The brand is planning to cut up to half of its line-up across its brands.Auto News reports as many as 75 models could be ditched, which would reduce VW Group’s capacity from 10 million vehicle to nine million."The global situation has continued to deteriorate over the past twelve months," Volkswagen Chief Executive Officer Oliver Blume said. "That is why we are ​acting now."There is no news yet on what models will be under threat, but Australia is unlikely to be immune from these changes.A spokesperson for Volkswagen Australia said this news will have no immediate impact on the local branch."As a next step, we will work closely with our headquarters in Wolfsburg, Germany, to assess what adjustments – if any – may be needed at the local level," they said.Audi, Bentley, Cupra, Lamborghini, Porsche and Skoda, as well as Volkswagen, all fall under the VW Group name, and the brand has a significant presence in Australia. VW alone has amassed more than 12,000 sales in Australia, but that figure represents a 16. per cent decline compared to June 2025.VW Group sales are declining globally as the brand grapples with soaring costs, including US tariffs, and increasingly competitive Chinese competition. Its profit margins were sliced in half between 2021 and 2025, according to Auto News.  Auto News is also reporting four German VW Group factories are in danger of seeing their doors closed for good, which are plants in Hanover, Emden, Zwickau and Neckarsulm.The brand is also planning to cut up to 100,000 jobs as part of its down-sizing. The proposed moves were subject to heavy protests from workers late last week.VW Group has deepened its ties to China recently, with CEO Blume suggesting the brand could export its China-only models to other markets. This could help cut down the costs for the brand to import cars to Australia. European-built models are often more expensive to produce and import than ones from China.

BYD tried to buy a share of Renault in a dramatic shot at a foothold in Europe, according to a new report in French media outlet Les Echos.According to the publication, BYD sought not just a joint production or factory deal, as Chery has secured in some locations with Renault’s partner Nissan, but actual ownership in the French giant as a shareholder.The deal didn’t work out under former CEO Luca de Meo, who was famous for guiding a re-structure of the previously dysfunctional Renault Nissan Alliance.According to several outlets, this was because Renault had already entered into an agreement with Geely to save its ailing Korean factory (formerly the Renault Samsung Motors factory), which now produces both Renaults and Polestars for Asian markets.Geely and Renault also co-own Horse Powertrain with Saudi Aramco, a spin-off of both company’s combustion engine divisions, which builds both engines and hybrid transmissions for future models both inside those two companies and for sale to other manufacturers outside of them.When BYD had a second crack at a Renault deal, it was turned down with involvement from French president Emmanuel Macron, with the government controlling 30 per cent of Renault voting shares and fiercely protective over its manufacturing footprint on the continent.The key benefit for BYD in this deal was obviously a way to avoid a tough tariff structure for Chinese built cars in Europe, while Renault would have access to its signature affordable Blade batteries, which it already sells to other manufacturers Tesla, KGM and Hyundai Group.Renault’s rejection of a BYD ownership stake won’t be a fatal blow for the Chinese giant in Europe. BYD already has a factory in Hungary and is seeking to establish a second base, with many analysts believing it will be in Spain and possible locations also including France and Germany.BYD needs such a foothold as it seeks new global opportunities off the back of a shrinking new car market in China over the course of 2026, and major profitability issues for even some of the biggest groups after a bruising domestic price war.

Volkswagen, for decades one of the world’s largest and most successful vehicle manufacturers, appears to be facing an uncertain future, with one of the key emerging Chinese brands challenging its once invincible position now putting bold shots across the German giant’s bow.At the company’s Annual General Meeting last month VW Group Chairman of the Board of Management Dr. Oliver Blume told shareholders significant job cuts are coming in the face of “conflict in the Middle East, shrinking market volumes and increasingly intense competition”.Not to mention US tariffs costing the group a reported €5 billion annually because VW Group built factories in Mexico (for export to the U.S, built to take advantage of the free-trade agreement between the US, Mexico and Canada) have become uneconomic.“We don’t earn enough money with our products. Developing a world car in Germany, producing it in Europe and selling it globally – our business model that was successful for decades – no longer works today.”At that stage Blume said, “For Volkswagen, Audi, Porsche and our software subsidiary CARIAD we have agreed to cut the number of jobs in Germany by some 50,000 by 2030.”And now Automotive News Europe has reported Blume is expected to ask the group’s supervisory board this month to approve cutting 100,000 jobs (15 percent of the current workforce), in what is potentially the biggest restructuring in modern German corporate history.In response to the cost-cutting measures, BYD's special advisor for Europe Alfredo Altavilla has publicly commented on VW's potential job cuts and subsequent restructuring (including the likely closure of four factories in Germany).“It’s the first real wake-up call for the European industry,” Altavilla told the Reuters Automotive Europe conference in Frankfurt overnight.He expressed doubts over the competitiveness of German manufacturing sites, as BYD, the world’s largest EV manufacturer, looks for a second production site in Europe, supporting its new facility in Szeged, Hungary, scheduled to begin operations before the end of this year. To counter Altavilla’s position, Oliver Blume is already on the record in pushing VW’s evolving approach to the Chinese market challenge, having told shareholders last month that, “Our ‘In China, for China’ strategy is gaining traction.”“We have built our largest research and development centre outside Germany in Hefei, reduced our vehicle development times by 30% and cut our material costs by as much as 50%. “In terms of technologies and costs we are on par with Chinese competitors – are adding to our traditional strengths of brand, design, quality, driving characteristics, safety and services and turning them into a clear market benefit. “As the traditional market leader for combustion engine vehicles, we are gaining a foothold in the hard-fought and fast-growing segment for NEVs – for new electric vehicles. We are in the game. But we still have plenty of work to do,” he said.And VW isn’t alone in grappling with global export challenges. According to German VDA data quoted by Automotive News Europe, exports of passenger cars from Germany peaked at 4.4 million units in 2016, just after the VW Group’s diesel-emissions scandal was exposed.Following the COVID-19 pandemic, vehicle exports plunged and have not recovered with Germany's vehicle exports coming in at around 3.2 million units last year. And German exports of passenger cars to China fell 45 per cent in 2025.

You’re a new-energy world leader Australia, don’t let anybody tell you any differently. You’re on the cusp of a cheap electricity boom which will only supercharge the transition to electric vehicles.I really don’t like the term “new energy” and I’m embarrassed I used it at all, let alone in the first four words of this story.Forgive me, but it’s now what the industry is calling electricity in relation to EVs and hybrid cars. There’s nothing new about electricity, it’s been keeping the lights on for 150 years, although its success in powering vehicles took longer and this was partly due to not being able to store it in batteries.There’s a lot of emotion in how electricity is produced and also in the viability of electric cars and I don’t really understand why. If I hear another EV naysayer roll out the tired old line about energy prices being prohibitive to running an electric car I’ll ask them which oil companies or coal mines they own.And the same goes for those who talk about the electricity grid not having the capacity to handle the uptake of EVs. Because neither view is based on actual evidence - well not current evidence.That's because currently batteries installed in both private homes and public community locations are creating the next big change that'll see energy prices drop.Australia is a world leader in both the home installation of solar panels (photovoltaic) and the uptake of home batteries to store the electricity the solar generates.According to the Clean Energy Council, at the close of 2025 a third of residential homes in Australia had roof-top solar.  As of 2026, according to International Energy Agency data, Australia leads the world in photovoltaic (solar) uptake per capita.The affordable price of home solar panels of about $8000 on average for a 6.6kW system (after the Federal Government rebate) has made the technology accessible and popular.  Australia also leads the world when it comes to battery installation. Global energy consultancy Rystad Energy says energy storage in the form of batteries is surging, with Australia, China, the UK, US and Germany the main drivers.Batteries small enough to power homes or large scale to power entire suburbs store energy from solar or wind. It’s these batteries that take the unpredictability out of renewable energy.The arguments of solar not being readily available at night or on cloudy days are no longer valid when the energy from the previous month has been bottled and ready for use.It’s this availability that's expected to bring energy prices down. That’s because in times of high demand fossil fuel power stations are expensive, especially gas-fired power stations which are often brought online in times of high demand. This is a major cause of high electricity prices.Storage of electricity in batteries works on the same principle as rainwater in a dam for public use or a tank attached to a house for home use.Home batteries are on the pricey side up front, with a decent-sized unit (10-15kWh) costing up to $16,000, but the Federal Government battery rebate can reduce that by $252 per kWh, or about $4000.Yes, that’s an initial outlay of $20,000 for solar and a battery but you won’t be at the mercy of energy providers any more because you’ll be storing whatever you don’t use. If you’re running an electric car and have a wall unit installed you’re laughing.Not everybody can afford that outlay and many houses aren’t new enough to support larger batteries. The good news is massive public batteries are being introduced. They’ll store electricity from renewable sources and supply it to households.It’ll have to be supported by the old ways too - coal and gas-fire power stations - but change doesn’t happen overnight.The cost of construction of a large-scale battery storage station is now equal to that of building a gas-fired plant. This is really important and will help motivate the shift for an industry that’s resistant to change.A report this week by Japan’s Nikkei Asia quoted data showing battery energy storage stations in China cost A$111 per megawatt hour in 2025, a drop of 27 per cent compared to 2024. That cost is almost equal to the A$110 per megawatt from a coal-fired plant. The key to cost-effective renewable generation and supply of electricity in a way that meets the growing demand of our lives with all our home technology and increasing uptake of electric cars is batteries.Battery tech is now advancing at a rapid pace and that development is led by countries like Australia and China. And this will mean a reduction of consumer energy prices because the cost of its generation is coming down.The final piece of the puzzle are electric vehicles which also operate as mobile power stations. The vehicle-to-load (V2L) function is becoming more common.V2L is offered on a number of models such as the Volkswagen ID.5, Kia EV3, Hyundai Ioniq 5, MG S5, Geely EX5 and BYD Sealion 7, and allows owners to store power in the car or use the electricity in the car’s battery to run appliances. It’ll be a long time before coal and gas is phased out and it will play a backup role for the new system for many years (or decades) ahead, but it’s nice to know that it now looks like our energy will be cleaner and cheaper. 

Volkswagen will launch a number of new electrified commercial vehicles in Australia later this year and in early 2027.Headlining these is the addition of an ID. Buzz Pro all-wheel drive trim, complementing the existing GTX flagship all-wheel drive trim. To date the ID. Buzz Pro has only been offered with a single, rear-mounted electric motor.There is also an all-wheel drive version of the ID.Buzz Cargo, as well as a long-wheelbase body style, coming to complement the existing rear-wheel drive trim.Both of these will form part of a model year 2027 (MY27) update for the ID.Buzz and ID.Buzz Cargo. Volkswagen hasn’t fully disclosed what else will be changing or added with this update just yet.Volkswagen is planning to launch a plug-in hybrid (PHEV) version of the Multivan people-mover in the first quarter of 2027. It’s understood this will come with all-wheel drive.This will be complemented by an Australian launch of the Caddy PHEV.Beyond the launch of these electrified products, the next launch for Volkswagen’s commercial vehicle division is the Amarok W600, which has been fettled by Australian engineering and manufacturing firm, Walkinshaw.The German carmaker will roll out its MY26 update for the Amarok, which axes the 2.0-litre bi-turbo diesel engine, and the addition of a new Amarok Style with the 2.3-litre turbo-petrol engine and the special edition Amarok Dark Label.Volkswagen Commercial Vehicles Australia Product Manager Michael Cenci told CarsGuide the entry-level Amarok Core will pick up the updated 2.0-litre four-cylinder turbo-diesel engine for MY26, swapping out the wet belt for a timing chain.This mirrors what the related Ford Ranger received for its MY26 update.Beyond the updated engine, the Amarok Core will also receive a 10-speed automatic transmission, replacing the six-speed automatic.At this stage it’s unclear what other changes will occur with this MY26 update for the Amarok. Volkswagen hasn’t published pricing yet.

Some of Australia’s most famous car brands are starting to come under significant sales pressure as Chinese brands win over local customers.According to the latest sales data that covers until the end of May, the biggest movers up the sales charts are the Chinese brands. BYD is up 120 per cent, Chery is up 84 per cent, GWM is up 23 per cent and Geely is up a remarkable 629 per cent.But given the Australian market typically remains at the 1.1-1.2 million mark in any given year, for those brands to experience sales growth, other car makers are taking a hit. And the brands that have suffered noticeable sales declines so far in 2026 are some of the biggest names.Nissan - down 32.8%The Japanese brand has slipped outside the top 10 sellers and it’s hard to pinpoint a particular reason. Nissan is down across its entire line-up, with even its stalwart X-Trail taking a 15.3 per cent sales hit in the first five months of the year.It certainly hasn’t helped that the company has dropped once-popular models, the Juke and Pathfinder, but both were already struggling to find an audience.The arrival of the new Navara may help to pick things up in the second half of the year, while the long-anticipated new-generation Patrol cannot come soon enough. The brand is also pinning a bounce back on a range of new hybrid ‘e-Power’ models due in the near-future to revitalise its line-up. Mitsubishi - down 26.4%In many respects this is an unsurprising result given Mitsubishi culled much of its line-up in 2025, dropping the Pajero Sport and Eclipse Cross, while also changing over to a new-generation ASX.The problem is that aside from the Triton ute, every other model in the current range is in sales decline so far this year. The ASX was the brand’s key model for years, offering an affordable small SUV option to many buyers. But the new, Renault-based ASX is simply failing to have the same results, likely because affordable, small SUVs are a key area of success for the Chinese brands.Mitsubishi has sold just 695 ASX in the first five months of the year, while BYD has sold 2919 Atto 2, Jaecoo has moved 4017 J5 and Chery has found 11,309 buyers - so it’s clear what has hurt the Japanese brands sales.The good news for Mitsubishi is that one of its most beloved models is making a return. An all-new Pajero is set to go on sale by the end of the year and could be a much-needed boost for the brand.Subaru - down 22.1%It was always going to be a tricky period for Subaru, with its two most popular models (Forester and Outback) being replaced within a 12 month period. However, the Forester has been on sale for nearly a year, so the 8.4 per cent sales decline in 2026 is concerning, while the Outback has been met with mixed reviews for its radically different styling.While there is no quantifiable evidence that Subaru is losing buyers to the Chinese brands, looking at the Forester’s mid-size SUV segment it’s clear that Australian buyers have been won over by what the newer brands are offering. The Forester sits behind the BYD Sealion 7 and GWM Haval H6, while the Chery Tiggo Pro 7 and Geely EX5 are closing in. Add to that the arrival of a new Toyota RAV4 and the continued popularity of the Hyundai Tucson and Kia Sportage and it makes for a tough challenge for the Forester.Outback sales are off to a relatively slow start, despite the introduction of the more rugged Wilderness variant, but the competition in the large SUV segment is not easy either, with a diverse group that includes the Toyota Prado, Hyundai Santa Fe and BYD Sealion 8.Subaru will be hoping its new all-electric Uncharted and Trailseeker can make an impact and capitalise on the current demand for EVs, while there is a chance both Forester and Outback sales could pick-up in the second half of the year.Suzuki - down 22.0%The key problem for Suzuki is its legacy is also built on offering affordable small models, so the arrival of so many Chinese brands offering similar (or better) products for similar (or less) money has made life hard for the brand.Sales are down across the board, with even its stalwart Jimny taking a 12 per cent hit in the first five months of the year. The arrival of the new Fronx has helped add new sales, but with so much decline it hasn’t helped the brand’s ultimate sales numbers.Suzuki is hoping that the Jimny Rhino, a new special edition of its beloved compact off-roader can help boost interest. But it will need more than that to reverse its current sales situation, which will be difficult as the competition is only going to get more intense.Volkswagen - down 17.0%It has been a mixed performance for the German brand so far in 2026. Overall sales are down and there have been big drops for some key models, but there has also been some important sales growth.The bad news is the Amarok ute has dropped more than 33 per cent, while its core SUV line-up has also been hit, with the T-Roc down 55.9 per cent, the T-Cross down 49 per cent and the Tiguan down 13 per cent.The good news is the brand is getting some traction with its electric offerings and its updated commercial vehicle line-up. Sales of the ID.4 are up over 455 per cent (only 171 sales behind the Tiguan), the ID.5 is also more popular as is the ID.Buzz van. The new Crafter (up 277%), new Transporter (up 78.1%) and the ID.Buzz Cargo (up 33.7%) are all enjoying a successful start to the year.But VW will need to get the Tiguan and Tayron really firing in the second half of the year - which is possible with the arrival of new hybrid options) if they don’t want to finish in its current position.