Despite going all-in on electric vehicles, storied German automaker Volkswagen (VLKAF) has struggled to sell them in the United States.
In May last year, Volkswagen indefinitely delayed the North American release of the ID.7, an electric sedan on sale in Europe since 2023. It is slated to replace the Passat and Arteon mid-size sedans. In its short statement, the automaker alludes to “current market conditions” as the reason for the delay.
According to the automaker’s sales figures, it sold just 17,021 units of the ID.4 SUV, a 55% drop from the 37,789 it sold the year prior.
2025 VW Tiguan
Volkswagen
Volkswagen is joining the Hybrid train
However, according to a new report from British motoring publication Autocar, Vee-Dub plans to respond to the flattened EV demand by rolling out a new series of hybrid vehicles centered around a new gas-electric hybrid engine.
Across the pond, in Europe, VW sells certain hybrid versions of its popular models, including the Golf, Tiguan, Passat, and Touareg.
These include plug-in hybrid versions, which require cars to be plugged in, and 48-volt mild hybrids, which use a small electric generator instead of a traditional starter motor and alternator.
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According to a source who spoke with Autocar, Volkswagen’s new powertrain is closer to a traditional hybrid setup like that of cars like the Toyota Prius.
These systems will not have a plug like an EV or a plug-in hybrid and will consist of a gas-powered engine, an electric motor, and a battery, which will be capable of purely electric driving for short distances.
The VW source denotes that the system will be built around a turbocharged 1.5-liter four-cylinder engine with different power levels ranging from 201 horsepower to 268 horsepower.
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However, the Autocar report says the system will debut in a model that isn’t sold in the U.S.: a small crossover called the T-Roc.
Despite this, this announcement comes off the heels of Volkswagen confirming last year that it was planning to bring PHEV models to the US.
Last year, now-former VW Group of America CEO Pablo Di Si noted that it could easily use such tech on any model it wishes to sell as a hybrid and stated that it is working to bring such cars to the States.
“The dealers are asking for it. The consumers are asking for it,” he told Auto News. “We have some really good news internally in terms of our product portfolio. I will not discuss it today. But we have good news that I’d like to share first with the team and then with the dealers.”
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