German Automaker Volkswagen (VW) plans to halt production of the Passat executive sedan at its US plants, to focus on the production of SUV models only.
According to media reports, all American plants, which includes the recently affected Chattanooga assembly unit, will cease to make the Passat, one of VW’s top-line sedans. It has also been sold under the names Dasher and Quantum, having sold more than 700,000 units since 1990.
Chattanooga will now focus on SUVs like the Atlas and electric ID.4 SUVs, which are expected to drive the company’s US sales. Ford made a similar move a few years ago, ditching hatchback production for SUVs.
The US market is currently favorable for SUVs and light trucks with Ford’s Bronco and F-150 being domestic and international bestsellers for the brand. In fact, during the semiconductor shortage, such models have been given higher priority, thanks to their profitability.