Volkswagen – Engine Icon https://engineicon.com Latest car news and advice blog Tue, 14 Jul 2026 02:07:50 +0000 en-US hourly 1 https://wordpress.org/?v=7.1 https://engineicon.com/wp-content/uploads/2026/01/cropped-ME_favicon-1-32x32.png Volkswagen – Engine Icon https://engineicon.com 32 32 Used Volkswagen Passat (Mk8, 2014-2021) review https://engineicon.com/used-volkswagen-passat-mk8-2014-2021-review/ Tue, 26 May 2026 08:49:14 +0000 https://engineicon.com/used-volkswagen-passat-mk8-2014-2021-review/

The Mazda 6 is another tough adversary, thanks to its smart styling, excellent dynamics and appealing interior, along with decent equipment and superb build quality at reasonable prices. The Ford Mondeo, Hyundai i40, Skoda Octavia/Superb and Vauxhall Insignia are also hard to beat. All offer hatchback or estate practicality with lashings of equipment and at keen prices. 

What to look for

Spare wheel

Most Passats come with a steel space-saver spare wheel, but the GT-specification car is fitted with a full-size alloy spare.

Filling up

You can’t put the wrong fuel in your Passat; a misfuel prevention device is fitted to every oneof the cars, regardless of trim level. 

Equipment

Volkswagen upgraded the Passat in January 2018, with all cars in the range benefitting from an extra helping of standard equipment.

Rear rattles

Rattling sounds from the back of the car can be down to a loose undertray – that or the suspension needs to be lubricated.

Interior

VW interiors are designed for ease of use rather than creative flair, and the Passat is no different. There are first-rate materials throughout, plenty of standard equipment and lots of head and legroom for rear-seat passengers. Boot space is good, too, at 586 litres for the saloon, and SE cars and above get a load-through facility. The Estate can stow 650 or 1,780 litres (seats up/down).

Running costs

Owners can choose fixed or variable servicing, at every 12 months/10,000 miles, or two years/18,000 miles. Fixed services alternate between minor and major. Brake fluid needs to be changed every two years. The cambelt should be replaced every 130,000 miles on TDI units or 75,000 miles on BiTDIs. Petrol engines have no set schedule.

Recalls

The Mk8 Passat has had 13 recalls. Early cars could be affected by braking problems because of wiring glitches, and airbags going off. Issues with panoramic sunroofs on Estates and faulty child locks led to actions in 2016. Recalls were also made for the ESP and lighting, airbags, seatbelt pretensioners, back seats, sunroof joints, wheel bearing housings and head restraints.

Driver Power owner satisfaction

The Passat Mk8 wasn’t in our last Driver Power used-car survey, but it notched up a 54th-place finish in the 2019 new car poll. That’s a respectable result rather than a spectacular one, with owners liking boot space, all-round visibility and ride quality. The infotainment system also gets a thumbs up, but owners aren’t so keen on refinement, the gearchange or running costs.

Verdict

For years the Passat has been a staple part of VW’s line-up, and in the UK it’s the brand’s third most popular model after the Golf and Polo hatchbacks.

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The Volkswagen ID. Buzz Returns With New Trims And One Big Fix Owners Wanted https://engineicon.com/the-volkswagen-id-buzz-returns-with-new-trims-and-one-big-fix-owners-wanted/ Fri, 15 May 2026 06:22:52 +0000 https://engineicon.com/the-volkswagen-id-buzz-returns-with-new-trims-and-one-big-fix-owners-wanted/

  • After skipping the current model year, the ID. Buzz will join Volkswagen’s model year 2027 lineup. 
  • It now gets a new dedicated trim for camping, with a bunch of cool features straight from the factory.
  • Volkswagen has finally added true one-pedal driving to the ID. Buzz 

The Volkswagen ID. Buzz will rejoin the German automaker’s model year 2027 lineup in the U.S. with two new trims, updated software, and revised color and wheel options. 

The electric minivan skipped MY2026 for the U.S. market, going from MY2025 to MY2027 due to low demand. Volkswagen Group of America CEO Kjell Gruner told InsideEVs at the New York Auto Show this year that the MY2025 had arrived late, so the MY2026 cars would have had a short run anyway.




2027 VW ID. Buzz Touring

Photo by: Volkswagen

Camping fans can now rejoice as Volkswagen is now bringing the Tourer 4Motion trim stateside. This model will get a bunch of features straight out of the factory, including a fold-out mattress and a platform, along with window blinds and ventilation panels. 

There’s also an “Overnight Mode” which will use the high-voltage battery to run functions like climate and the battery even when the vehicle itself is switched off. It will also come with a folding table and chair set.




2027 VW ID. Buzz Tourer

Photo by: Volkswagen

Another important addition is one-pedal driving, which will allow drivers to bring the vehicle to a complete stop using regenerative braking and without touching the brake pedal. MY2025 vehicles did not have true one-pedal driving, which was a big miss.

The ID. Buzz now also gets the automaker’s latest ID.S 6 software with improved user experience on the infotainment, including a revised navigation screen layout and a new vehicle settings page for easier access to functions. There’s also an updated App Store that will allow owners to download third-party apps like YouTube and Spotify.

There’s one more change that makes a lot of sense. The dual-tone paint is a huge part of the minivan’s personality, and now you can’t have the ID. Buzz otherwise. The ID. Buzz will now only come with dual-tone paint schemes, along with a new Candy White over Cherry Red paint option and available white wheels inspired by the Type 2 microbus.

Finally, the trim line has been revised to just four models: Pro S RWD, Pro S 4Motion (new), Tourer 4Motion (new), and Pro S Plus 4Motion.



Volkswagen hasn’t released pricing just yet, but the MY2025 ID. Buzz starts at $60,000 before destination charges. If the automaker brings the price within the low $50,000 range, it could go a long way in making the iconic vehicle more appealing.

Contact the author: suvrat.kothari@insideevs.com

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Volkswagen taps XPeng for the new ID. Aura T6 electric SUV https://engineicon.com/volkswagen-taps-xpeng-for-the-new-id-aura-t6-electric-suv/ Tue, 14 Apr 2026 01:58:06 +0000 https://engineicon.com/volkswagen-taps-xpeng-for-the-new-id-aura-t6-electric-suv/

Volkswagen is making another big move in China. The company showed off the ID. Aura T6 for the first time – a new vehicle designed specifically for the local market. This EV comes from the FAW-Volkswagen joint venture and highlights how German car makers are now working closely with Chinese tech firms. The ID. Aura T6 reveals a shift in how Volkswagen builds its EVs by using technology from XPeng.

The public will get its first close-up look at this vehicle at the Beijing Auto Show starting April 24, 2026. We’ve seen many electric cars from the ID. family before, but this one feels a bit different. It follows a series of concept cars that first appeared in 2025. Initially, we thought the Aura name would belong to a sedan, but Volkswagen decided to go with a mid-size crossover instead.

VW ID: Aura T6 - source: FAW-Volkswagen
VW ID: Aura T6 – source: FAW-Volkswagen

Volkswagen has a specific meaning for every part of the name. The word “Aura” is actually an acronym. It stands for Advanced, User-centric, Reliable, and All-access. These are the four pillars the brand wants to focus on for its future EVs. The letter “T” simply stands for “Travel.” The number 6 is a bit more poetic, as Volkswagen says it represents the “golden balance point” for this size of vehicle. Whether or not drivers feel that balance is a different story, but it shows the company is putting a lot of thought into the branding.

When looking at the ID. Aura T6, the design is a bit of a puzzle. It does not look like a traditional, boxy SUV, but instead, it has a body that mixes the styles of an SUV and a minivan. The car has a very short hood and a windshield that leans back quite far. This shape helps the car cut through the air better, which is important for getting more range out of the battery.

VW ID: Aura T6 - source: FAW-Volkswagen
VW ID: Aura T6 – source: FAW-Volkswagen

In terms of size, the new VW is a large machine – it measures approximately 16 ft in length, putting it right in the middle of other Volkswagen models like the ID. Era 9X and the ID. Unyx 08. Because it is so long, the interior is spacious enough for three rows of seats. Volkswagen chose a 2+2+2 layout. This setup is great for families because it gives everyone a bit more personal space than a standard bench seat would.

The ID. Aura T6 uses the new CEA electronic architecture. This system was built together by Volkswagen and XPeng. By working together, they managed to reduce the number of electronic control units by 30 percent. Having fewer computers sounds like a step backward, but it actually makes the car smarter and easier to update. It allows the vehicle to receive “over-the-air” updates, much like a smartphone, and supports advanced AI systems inside the cabin.

VW ID: Aura T6 - source: FAW-Volkswagen
VW ID: Aura T6 – source: FAW-Volkswagen

Safety and self-driving features are also a major focus for this new model. The ID. Aura T6 is the first electric crossover from Volkswagen to feature a LiDAR sensor on the roof. This sensor acts like a laser eye that helps the car see everything around it. The car uses a system from Carizon, which is another partnership between Volkswagen and Horizon Robotics.

Volkswagen even used some light humor during the reveal. The test cars were covered in a camouflage wrap that said “German engineering + local innovation.” It is a clear sign that the company knows it needs help from local tech experts to stay competitive. Even with the wrap, you can see the illuminated badges on the front and back, which is a signature look for the brand’s newest EVs. More specific details about the battery size and power will likely come out once the Beijing Auto Show officially begins.

Via

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Volkswagen ID.Buzz Cargo Reviews | Overview https://engineicon.com/volkswagen-id-buzz-cargo-reviews-overview/ Sat, 11 Apr 2026 23:48:54 +0000 https://engineicon.com/volkswagen-id-buzz-cargo-reviews-overview/

Overview

 

A KOMBI inspired van was always going to be something of a hit with sentimentalists of a certain era.

 

Even with electric power, it’s a formula that tugs at the heart strings of those who remember the “good old days” … days when slow progress and the occasional engine fire were de rigueur.

 

But nostalgia is indeed a powerful tool, a tool sharp enough to attract cashed-up buyers perhaps wishing to relive their youth in a more socially and environmentally sensitive manner.

 

The ID.Buzz embraces much of that glow – even in the Cargo format tested here. It is undeniably cool, and (mostly) very well thought out, delivering the smarts commercial buyers require with the technology and comfort modern ‘Kombi’ buyers demand.

 

The short-wheelbase ID.Buzz Cargo on test is available from $69,990 plus on-road costs and is a logical rival to the Farizon SV (from $71,490), Ford Transit Electric (from $77,890), LDV eDeliver 7 (from $67,358), and perhaps even Volkswagen’s own Transporter BEV (from $83,590).

 

BUT – and it’s a very big but – the Volkswagen ID.Buzz has a significantly reduced cargo capacity when measured against its competitor set, falling victim to a chunky 2376kg kerb weight and offering just 774kg of payload. That’s about the same as a Volkswagen Caddy, or around half-a-tonne less than the Volkswagen Transporter.

 

Braked towing is a somewhat lacklustre 1200kg and the ball weight just 75kg.

 

On the plus side, there are two sliding doors, an electric rear tailgate (an $890 option), seamlessly flat cargo floor, protected sides, a sturdy bulkhead, brilliant LED lighting, and useful lashing points on three of the cargo walls. Volkswagen has thought of its end-user well here, even offering separate locking between the passenger and cargo cabin for those who are in-and-out of their van all day long.

 

Further forward, the passenger cabin offers seating for three, fabric upholstery, dual-zone climate control, power outlets galore, truly useful oddment storage, keyless entry and start, a leather-wrapped steering wheel, easy-to-clean vinyl flooring, and even a heat-reflecting windscreen.

 

The instrument panel is digital and measures just 5.7 inches while the infotainment array dominates the dash’ at 12.9 inches. It hosts wireless Apple CarPlay and Android Auto, Bluetooth connectivity, DAB+ digital radio reception, voice control, and access to a bevy of vehicle settings and personalisation tools.

 

The ID.Buzz also offers a wireless phone charger and a USB -C port for your dash camera.

 

Other standard inclusions are 18-inch steel wheels with aerodynamic trim covers, LED lighting front and rear, and a generous catalogue of safety technologies including adaptive cruise control, autonomous emergency braking, blind-spot monitoring, front and rear parking sensors, lane keeping and departure assistants, a reversing camera, and six airbags.

 

Volkswagen backs the ID.Buzz Cargo with a five-year/unlimited-kilometre warranty with an eight-year/160,000km warranty on the high-voltage battery pack. Service intervals are set at 24 months/20,000km (whichever comes first) with capped-price servicing running to $1450 for six years.

 

Roadside assistance is included in two-year blocks when servicing through the Volkswagen network.

 

Driving Impressions

 

The ID.Buzz range (including the ID.Buzz Cargo on test) is underpinned by Volkswagen’s somewhat ubiquitous MEB (or Modularer E-Antriebs-Baukasten) platform. Think of it as modular foundation on which cars, SUVs, and even vans can be constructed with differing drive configurations and motor and battery sizes.

 

In the case of the ID.Buzz Cargo, the framework plays host to a single permanent magnet rear-mounted electric motor and single-speed reduction gear driving the rear wheels. Output is listed at 210kW/550Nm and battery capacity 79kWh (net).

 

The high-voltage power system (400v) draws from a lithium-ion battery pack that can deliver up to 431km range in ideal conditions. Volkswagen quotes an official energy consumption rate of 20.3kWh/100km, which in our experience isn’t too far from the mark.

 

Charging is rated at up to 185kW via a DC fast charger with a 10-80 per cent state of charge (SoC) achieved in 26 minutes. A full charge via an 11kW AC device takes 7.5 hours.

 

In real-world use, these numbers stack up rather well. We could only access a 50kW DC charger for the duration of the test but found charge times acceptable. At home, with a domestic (240v/10a) GPO progress was far slower, but of course that is to be expected.

 

Driving range, depending on topography and average speeds, ranged from about 380km at worst to around 415km at best per complete charge. It’s a long way short of a diesel van, for sure. But a figure that is closely aligned to the manufacturer’s claims, which is a bit of a rarity these days…

 

In terms of driving character, the ID.Buzz Cargo is something of a surprise. Performance is brisk and acceleration wonderfully linear, the willingness to respond to throttle immediate – even at highway speeds. The throttle is sensibly modulated (so as not to whisk you into the cargo bay at the slightest prod) and may be altered through various modes (Eco, Comfort, Sport, and Individual) to soften or hasten response as required.

 

The ID.Buzz Cargo cruises comfortably with dutiful assistance from the ADAS nannies. We found the calibration of the driver assistance bundle to be ideal for Australian roads, intervening as necessary without over-reacting. The system is easy to use, with steering wheel spoke buttons offering direct access to commonly used functions. Why more manufacturers can’t get this right is beyond us…

 

Volkswagen has tuned the chassis of the ID.Buzz Cargo to offer almost SUV-like levels of handling prowess – and comfort. It is a surprisingly supple ride that quells road imperfections rather well. Add a little load to the back, and it’s just about ideal.

 

Of course, that means there’s a slight trade-off when it comes to handling. The ID.Buzz Cargo can tend to squat and pitch under heavy acceleration and braking but keeps lateral motion in check. This creates a slightly unusual dynamic when “giving it the berries”, but in most conditions is barely noticeable.

 

Traction and road grip are absolutely terrific, the front-to-rear balance of the ID.Buzz Cargo offering predictable engagement, even with the Giti-branded rubber fitted to our test car. We found the steering likewise agreeable, being car-like quick, though perhaps less tactile.

 

Volkswagen’s disc (front) / drum (rear) braking combination is smooth and effective with reliable pedal pressure and adequate assistance. In combination with regenerative braking (or ‘B’ mode), we found little issue in bringing the weighty van to a standstill, managing a smooth action with no hard ‘full stop’ when braking at the ‘lights.

 

From the driver’s viewpoint, the ID.Buzz Cargo almost nails the brief. The seating position is sound, as is the relationship with the vehicle’s primary controls. Forward visibility is excellent, and road noise non-existent. However, that’s not to say the modern-day Kombi isn’t without its flaws.

 

With no grab handle on the A pillar, we found getting in and out of the ID.Buzz Cargo a chore. Maintaining three points of contact is just about impossible, the slippery plastic step another oversight that clearly needs a rethink.

 

We were also very disappointed with the hand-clap style wipers. The motor resonates distinctly through the forward bulkhead and the blades chatter on the windscreen. On a long, wet drive it’s enough to send you around the twist. Talk about a fair-weather friend…

 

Understandably, the interior of the ID.Buzz Cargo is, let’s just say, hard-wearing, with acres of black plastic to endure. Yes, it’s well considered and offers plenty in the way of storage, but some painted surfaces to match the exterior of the car (a la the original Kombi) might have gone a long way toward cheering up an otherwise utilitarian cabin.

 

We’d also appreciate a centre armrest for longer journeys, perhaps a fold-down job that can be moved aside when not in use, and the ability to remove the centre head-restraint to improve rearward visibility. They’re little things, for certain, but ones that would benefit the driving experience no end.

 

While not a match for the workhorse Transporter, the ID.Buzz Cargo is a smart alternative for those who need the space a commercial van offers, without the payload and towing capacity.

 

It’s an attractive, well-finished, and (mostly) well considered vehicle that ticks most of the boxes an electric van should – and wraps it up in a retro-styled package you just can’t help smile at. What’s not to like about that?

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Volkswagen ID.7 Tourer | Auto Express https://engineicon.com/volkswagen-id-7-tourer-auto-express/ Sat, 28 Mar 2026 23:24:16 +0000 https://engineicon.com/volkswagen-id-7-tourer-auto-express/

The 77kWh battery has a maximum charging speed of 175kWs, while the 86kWh version ramps that up to 200kWs, so a 10 to 80 per cent charging window means top-up times using a suitably rapid charger take 28 minutes and 26 minutes, respectively. Utilising a more cost-effective 7kW home wallbox charger, it’ll take just over 12 hours to fully recharge the 77kWh battery, while the 86kWh takes just under 14 hours.

During our electric car charging speed test of an ID.7 Tourer Pro S, we found it could reach its advertised 200kW peak charging speed, and maintain that speed until the battery got to 50 per cent state of charge. More impressively, the 20 to 80 per cent top-up charge was faster than advertised, at just 21 minutes. If you need maximum range for a long trip, the ID.7 is capable of handling the 80 to 100 per cent in 16 minutes, or a quarter of the time it took a pre-facelift Tesla Model Y and a Peugeot E-3008, both of which were put through the same test. 

That shows that the ID.7 Tourer is well-suited to longer trips that involve stopping for a quick charge, and you can help even further by manually pre-conditioning the battery ahead of a charging stop, which means that you should reach peak charging speed much quicker than if you just plugged the car in to a rapid charger. Of course, the car will automatically precondition the battery if the route has been plotted into its sat-nav system, and it deems you’ll need to stop partway through your journey at a charger en route.

Model  Battery size Range Insurance group
Tourer Pro 77kWh 77kWh 373 miles 38E
Tourer Pro S 86kWh 86kWh 424 miles 38E
Tourer GTX 86kWh 86kWh 359 miles 41E

Insurance groups

In terms of insurance, both the Pro and Pro S versions of the ID.7 Tourer are in group 38, while the GTX Plus is in group 41, making it the most expensive model in the range to provide cover for. All versions of the ID.7 Tourer are in a lower group rating than the BMW i5 Tourer, though, which starts in group 43.

Tax

Company car drivers will benefit from lower Benefit-in-Kind (BiK) tax rates compared with traditional petrol, diesel or even hybrid-powered cars such as the Volkswagen Passat, because of the lack of tailpipe emissions. The ID.7 is still an expensive car, so that will have a bearing on your monthly fee. The current BiK rate is three per cent, but it will rise to four per cent for the ‘26 to ’27 tax year, and five per cent from ‘27 to ‘28.

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2025 Volkswagen Golf GTI at Lightning Lap 2026 https://engineicon.com/2025-volkswagen-golf-gti-at-lightning-lap-2026/ Wed, 18 Mar 2026 22:47:43 +0000 https://engineicon.com/2025-volkswagen-golf-gti-at-lightning-lap-2026/

From the March/April 2026 issue of Car and Driver.

Lap Time: 3:11.3

Class: LL2 | Base: $42,105 | As Tested: $42,750
Power and Weight:
241 hp • 3285 lb • 13.6 lb/hp
Tires:
Hankook Ventus S1 evo3
235/35R-19 91Y +

The Golf GTI is no longer offered with a manual transmission. Boo-hoo, right? Here’s why that’s not worth crying over.

This year’s dual-clutch automatic car just beat all six of the GTI’s previous Lightning Lap lap times. It shaved eight-tenths off the first eighth-gen GTI we ran in 2022 and even bested the six-speed manual by a tenth. Dare we mention it did so in its first session on track?

Unlike the Golf R, no meaningful equipment changes put the GTI on the grid this year. Well, it did get actual buttons on the steering wheel instead of capacitive switches. Could we get through an entire lap without accidentally turning on the heated steering wheel? Only one way to find out. And, unsarcastically, on a track with two straights that stress test the GTI’s brake system, the steering wheel isn’t the only part that will get hot.

2025volkswagengolfgtiView Photos

Michael Simari and Marc Urbano|Car and Driver

The GTI’s brakes are good for one lap, followed by a nice, relaxing cooldown. Lean on them too hard into Turn 1 or slowing from 118.7 mph on the Back Straight, and they become considerably less effective. If you’re hoping for the cooling effect of the long Front Straight to reset everything, prepare for disappointment.

Keep the brakes from getting too hot, and you’ll find that, unlike the awkward dance steps of the GR Corolla’s conventional eight-speed, the GTI’s seven-speed dual-clutch automatic moves quickly and decisively. The limited-slip differential eliminates any inside-front-wheel spin in corners, with this traction boon helping the GTI prevail over the understeer-revealing Infield section.

2025volkswagengolfgtiView Photos

Michael Simari and Marc Urbano|Car and Driver

Very little threatens the stability of the GTI, even when it’s averaging 113.3 mph through the Climbing Esses. And while the brakes need to be babied, the rest of the GTI wants to stay on track. That’s high praise for a car surrounded by entries boasting four-figure horsepower and six-figure prices.

Back to Lightning Lap 2026

Headshot of Austin Irwin

Austin Irwin has worked for Car and Driver for over 10 years in various roles. He’s steadily worked his way from an entry-level data entry position into driving vehicles for photography and video, and is now reviewing and testing cars. What will he do next? Who knows, but he better be fast.

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2025 Volkswagen Golf R at Lightning Lap 2026 https://engineicon.com/2025-volkswagen-golf-r-at-lightning-lap-2026/ Mon, 16 Mar 2026 22:43:18 +0000 https://engineicon.com/2025-volkswagen-golf-r-at-lightning-lap-2026/

From the March/April 2026 issue of Car and Driver.

Lap Time: 3:03.7

Class: LL2 | Base: $52,120 | As Tested: $52,416
Power and Weight:
328 hp • 3369 lb • 10.3 lb/hp
Tires:
Hankook Ventus S1 evo3
235/35R-19 91Y +

Life is all about give and take. Volkswagen gave the Golf R another 13 horses for 2025, so we took the R to VIR and chopped 0.6 second off the model’s previous best time.

Let’s examine the data. Despite two different drivers, when we overlay a fast lap from a 2022 Golf R in Lightning Lap 15 onto this year’s the similarities are staggering, except for one critical moment. The improvement doesn’t reveal itself until the series of fast downhill corners—the Roller Coaster and Hog Pen sequences—that come before the Front Straight. It’s there that the updated Golf R carves out 0.6 second during a lap that’s otherwise identical to the 2022 car’s.

2025volkswagengolfrView Photos

Michael Simari and Marc Urbano|Car and Driver

Thirteen horses are nice, but more confidence in the brakes than in the GTI allowed us to brake later and carry more speed into the first downhill right, Roller Coaster. From there, the R’s stability and all-wheel-drive traction took over. Trust grew, and as confidence grows, lap times tend to fall until you find a tire wall.

In low-speed corners, the Golf R’s all-wheel-drive system is indispensable, as it lets you mash the throttle without any time-robbing drama. But the car still demands discipline. Overcommit in the braking zones, and the R will leave the racing line just like any other car in favor of a path of destruction. Just ask the tire wall at the end of the Back Straight about the R’s love tap.

Like the changes brought by the refresh, a 3:03.7 lap is not shockingly greater. It’s simply better. And at a track this demanding, being a little better, even for just a single sector, pays off in a big way.

Back to Lightning Lap 2026

Headshot of Austin Irwin

Austin Irwin has worked for Car and Driver for over 10 years in various roles. He’s steadily worked his way from an entry-level data entry position into driving vehicles for photography and video, and is now reviewing and testing cars. What will he do next? Who knows, but he better be fast.

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50,000 heads to roll at Volkswagen Group https://engineicon.com/50000-heads-to-roll-at-volkswagen-group/ Sat, 14 Mar 2026 00:27:56 +0000 https://engineicon.com/50000-heads-to-roll-at-volkswagen-group/

VOLKSWAGEN Group has announced it will cut 50,000 jobs in Germany by 2030 (from a total German head count of about 300,000) as it moves to contain costs amid falling profitability, softer demand in key markets and mounting pressure from global competition.

 

The cull follows the largest carmaker in Europe reporting its weakest profit result since 2016, with net profit after tax dropping sharply in 2025 to a reported €6.9 billion ($A11.6b), down from €12.4 billion ($A20.8b) a year earlier.

 

Volkswagen says the “decline” reflects a combination of headwinds including US import tariffs, fierce competitive pressure from Chinese manufacturers and the high cost of restructuring as the company continues its transition toward electrification.

 

Volkswagen Group chief executive Oliver Blume said the staff reductions would affect operations across Germany and span the broader group, including brands such as Audi and Porsche.

 

“We are operating in a fundamentally different environment,” he said in a letter to shareholders.

 

The just announced 50,000 job reduction expands on an earlier agreement reached with powerful German unions, under which Volkswagen had already committed to cutting more than 35,000 positions in a “socially responsible manner” by 2030 as part of a plan to save around €15 billion ($A25.2b).

 

Like some of Volkswagen’s German rivals it has been hit hard by slowing (particularly EV) demand in China, historically one of its most important and profitable markets.

 

At the same time, Chinese carmakers are expanding rapidly into Europe, intensifying pressure on incumbent manufacturers across both combustion and electric vehicle segments.

 

Conditions have also been worsened by US tariffs on imported vehicles, adding further strain to margins at a time when the company is already investing heavily in new electric vehicle architectures, software and battery technology.

 

Volkswagen Group chief financial officer Arno Antlitz said the business had endured a difficult 2025.

 

“2025 was shaped by geopolitical tensions, tariffs and intense competitive pressure,” he said.

 

“The group’s operating margin of 4.6 per cent – even after adjusting for restructuring measures – was not sustainable in the long term.

 

“We can only realise this if we continue to rigorously reduce costs, leverage group synergies, reduce complexity and thus sustainably increase profitability.”

 

Despite forecasting a recovery in the year ahead, Volkswagen has warned that more internal discipline will be required.

 

For 2026, the group is forecasting a core profit margin of between 4.0 and 5.5 per cent, underlining the continued fragility of its earnings outlook.

 

The company sold around 9.0 million vehicles globally in 2025, broadly in line with the 9.03 million recorded in 2024, though the flat volume result masks uneven performance across brands and regions.

 

Audi and Porsche have both adjusted aspects of their EV strategies in response to softer-than-expected growth in electric vehicle demand, while the broader group continues to juggle legacy combustion-engine investment alongside future-focused EV and software spending.

 

Volkswagen’s challenges have also been reflected Down Under where the brand’s sales fell 20.6 per cent in 2025 after declining 16.8 per cent the year before.

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XPeng partners with Volkswagen to bring smart driving AI to millions of EVs globally https://engineicon.com/xpeng-partners-with-volkswagen-to-bring-smart-driving-ai-to-millions-of-evs-globally/ Tue, 24 Feb 2026 21:57:01 +0000 https://engineicon.com/xpeng-partners-with-volkswagen-to-bring-smart-driving-ai-to-millions-of-evs-globally/

XPeng, still a fairly young car company from China, signed a major deal to share its newest smart driving technology with Volkswagen Group. This is the first time a traditional top-tier carmaker has bought core AI software from a Chinese startup to use on a global scale.

The technology at the center of this deal is called VLA 2.0. The Vision-Language-Action is a second-generation AI system that helps EVs “see” and “understand” the world as a person does. It does not need any digital maps to work. Instead, it can navigate tight streets and even school campuses on its own. It even adapts to different driving habits in different countries. XPeng CEO He Xiaopeng says the software is almost like having a “Level 4” self-driving car, which means the car can handle most driving tasks without help.

Volkswagen is XPeng's first customer for the VLA 2.0
Volkswagen is XPeng’s first customer for the VLA 2.0

XPeng has huge plans for the next few years. The company wants to sell 1 million electric cars in overseas markets by the year 2030, with more than 70% of its profits to come from outside of China by that time. Last year, XPeng sold 429,445 vehicles – more than double what it sold the year before. Only 45,008 of those were sold outside of China in 2025, but the company expects that number to double again in 2026.

To support this growth, XPeng is opening hundreds of new stores. By the end of this year, it plans to have 680 sales locations worldwide. The company is focusing most of its energy on five specific countries: Germany, Norway, France, Thailand, and Israel. It is also hiring 8,000 new workers this year to keep up with all the new projects.

XPeng uses in-house developed AI chips - source: XPeng
XPeng uses in-house developed AI chips – source: XPeng

One of those projects is the XPeng P7+ sedan (full review right here). This car is already being built in Austria and will soon be sold in 25 different European countries. Eventually, XPeng wants to sell its EVs in more than 60 countries. In early 2026, the company plans to launch three new models that use extended-range technology. One of those EVs is the new XPeng X9 PowerX, which we reviewed recently.

But electric cars aren’t enough for XPeng and Mr. He has a vision for the year 2026 that sounds like a science fiction movie. He wants to start mass-producing humanoid robots, flying cars, and robotaxis all in the same year. The new robot, named “Iron,” is expected to go into mass production by the end of 2026. Meanwhile, the Land Aircraft Carrier is already being tested on a pilot production line.

XPeng autonomous taxis are coming this year - source: XPeng
XPeng autonomous taxis are coming this year – source: XPeng

Robotaxis are another big part of the plan. XPeng is starting small trials for these taxis this year and expects the business to grow very quickly between 2027 and 2028. The goal is to make a car so smart that a passenger can simply say, “Take me to the nearest coffee shop,” and the car will find the best path while avoiding traffic lights and narrow roads.

Some people might find the idea of a flying car or a robot driver a bit strange, but Volkswagen clearly sees the value. By using Xpeng’s AI, Volkswagen can make its own EVs smarter and more competitive. For XPeng, having a big partner like Volkswagen proves that its technology is some of the best in the world. As the “DeepSeek moment” for autonomous driving begins, these two companies are betting that AI will be the most important part of any car you buy in the future.

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