Volkswagen Passat axed in Australia, new model not coming here

The Volkswagen Passat mid-size car will be axed in Australia by the end of this year – amid declining sales – nearly half a century after the first example joined local roads.

The new Passat due to be unveiled in Europe next month will not come to Australia, Volkswagen has confirmed – and production of the current model is planned to cease for local showrooms by the end of this year.

However, the company noted fleet orders from Victoria Police and NSW Police – currently the biggest customers of the Volkswagen Passat locally – will be honoured.

Volkswagen Australia says culling the Passat – as well as its sportier Arteon relative, and a number of other slow-selling models – is intended to reduce complexity in showrooms and create space for four electric vehicles due within 18 months.

It will bring to an end the German car giant's oldest passenger-vehicle model name in Australia that is still in showrooms, nearly half a century after the first Passats were imported to Australia in 1974.

The Passat has been sold to private buyers exclusively as a wagon since the sedan was deleted at the end of 2021 – though when both body styles were available, the wagon was by far the top seller.

VW Passat sales increased by 66 per cent last year compared to 2021 due to a complete model range and improved stock – and are up 29.6 per cent so far this year.

However fewer Passats have been reported as sold over the past two and a half years – since the start of 2020 – than in 2017 alone, and are well down on its 21st-century sales peak of 4362 reported sales in 2013.

Last year, sales in the auto industry's "medium car under $60,000" vehicle category – dominated by the Toyota Camry – in which the VW Passat competes were a fifth of the result recorded in the Passat's best sales year, 2013.

Volkswagen Australia director of passenger vehicles Michal Szeniecki told Drive axing the Passat and Arteon is "a very good decision for us to make."

"We're recalibrating our portfolio to SUVs and electric vehicles [plus Golf and Polo hatchbacks], and that's it. Sometimes hard decisions have to be made ... We're doing a bit of a clean-up before we enter our chapter of electric vehicles."

The end of the Passat with Model Year 2023 means the final vehicles are due to roll off the production line later this year.

Volkswagen Australia says it will fulfill any remaining orders from retail customers, as well as police in New South Wales and Victoria – where Passat 140TSI base variants are used for general duties work, alongside a smaller number of 206TSI high-performance versions for highway patrol use in Victoria.

While the Volkswagen Passat will not be renewed for a new generation in Australia, a new model is due in European showrooms early next year – as a wagon only – with a sharper look, high-tech cabin with a super-sized touchscreen, and a range of mild-hybrid and plug-in hybrid power options.

It has been confirmed the new generation of the Passat's twin, the Skoda Superb, will come to Australia.

However it is 18 months away from showrooms as Skoda Australia has elected to launch the car with a high-output, circa-200kW turbocharged engine, replacing the current 206TSI model that accounts for 75 per cent of sales.

The indirect successor to the Passat sedan – as well as the Arteon liftback – in Europe is the ID.7 electric car, due in showrooms there later this year or early next year with up to 700km claimed driving range.

MORE: New Skoda Superb 18 months away from Australia with high-output engine

Mr Szeniecki told Drive VW Australia is interested in the model for local showrooms, but it is not the top priority given the continual growth of SUV sales at the expense of sedans and wagons.

"It's my dream [to offer ID.7]. We will investigate the business case for Australia for ID.7. It's not the most intuitive model in our SUV-dominated market, but the car itself is so phenomenal that we will try," the executive said.

"ID.4 and ID.5 [SUVs] are more than good enough, but ID.7 would be a nice addition."

When asked if VW Australia has looked at ID.7 more closely since deciding to axe the Passat and Arteon, Mr Szeniecki said: "In our thinking, yes. In how feasible it is for Australia, no."