Volkswagen Increases Combustion Engine Model Prices by 4%

Dealers in Germany have been informed that the Volkswagen brand is increasing the prices of cars with combustion engines by an average of 4.4%. Volkswagen claimed that the price hikes were brought on by significant increases in the cost of acquiring raw materials, energy, and equipment. The price increases include well-known models like the Golf, Tiguan, Passat wagon, Polo, and T-Roc. On February 23, 2023, the hikes are set to take effect.

Volkswagen asserts that no one, including Volkswagen, can avoid high inflation. They are working as hard as they can with long-term contracts, increasing efficiency, and hedging transactions, but the impact on costs cannot be fully compensated.

A Volkswagen dealer informed him that their sales are declining and that they are raising prices. He was taken aback. Dealers argue that in the current economic climate, automakers ought to reduce prices due to consumer uncertainty.

According to ZDK, a German dealer and repair association, Antje Woltermann, incoming orders are lacking significantly. It is necessary for manufacturers to evaluate whether their prices are still in line with the market. There are other automakers who are raising prices for new models.

According to Deutsche Automobil Treuhand, a vehicle data collection company, the average price of a new car increased by 5,000 euros in 2022. According to one Volkswagen dealer, the company raised prices by nearly 11% between the middle of 2021 and the middle of 2022.

Customers who purchase automobiles through financing deals also have to pay more. According to the price comparison website Check24, interest rates have increased by more than 5%.