Volkswagen is jacking up the prices of its combustion-powered models in Germany in response to record inflation.
In informing dealerships of the price hike, Volkswagen revealed that “significant cost increases in the procurement of raw materials, energy and equipment” prompted the move. The average price of its combustion models will rise by 4.4 per cent with affected models including the Golf, Tiguan, Passat wagon, Polo, and T-Roc.
“Even Volkswagen cannot escape high inflation. Although we are working as best we can with long-term contracts, hedging transactions and efficiency increases, the effect on costs cannot be fully compensated,” VW added.
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The new prices will be introduced on February 23, Automobilwoche reports.
It has been revealed that the price for an entry-level VW Polo will jump by €905 ($967), a 4.5 per cent increase. Similarly, the price of the Golf will jump by €1,585 ($1,693) or 5.36 per cent, the T-Roc will now be €1,455 ($1,554) or 5.98 per cent more expensive, and the Arteon Shooting Brake will now start at €42,270 ($45,167), a 4.38 per cent increase or €1,985 ($2,121).
Many dealerships have expressed concern about the price rises and suggested that VW should actually be cutting prices due to consumer uncertainty. One dealer said it is “stunned” by the price hikes, noting that its sales have been falling.
“Incoming orders leave a lot to be desired,” Antje Woltermann from the German Motor Trade (ZDK) dealer and repair association said. “Manufacturers have to consider whether their prices are still in line with the market.”
These price increases come after a series of other price changes over the last 18 months. Indeed, one dealer told Auto News Europe that VW had increased prices by almost 11 per cent between mid-2021 and mid-2022.
