More Buzz, Less Beetle in Volkswagen’s Future
Some icons make more sense than others. The VW ID7 for North America still on hold.
The Volkswagen ID Buzz minivan is not a one-and-done model; there will be refreshes and future generations. But don’t expect the nostalgic enthusiasm to spread to the revival of a Volkswagen Beetle any time soon.
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Yes, the ID Buzz, an electric version of the retro VW Bus, is expensive and may not generate huge sales volume, but it is a halo vehicle and makes a statement for the brand, Volkswagen executives say.
The ID Buzz has a future, in part because in Europe half the van sales are commercial vehicles. It means the Buzz will get refreshes and a new model in the future. There are no plans for a commercial version of the ID Buzz in North America because of import taxes, but the commercial importance of the vehicle globally is what will drive a longer life span with updates to keep the retail version fresh as well.
Vehicles like the Buzz, with ample passenger seating, will also play a larger role in the age of autonomous vehicles. VW already has a test fleet of minivan robotaxis in Austin, Texas.
“We have products like the Buzz, which are absolutely great halo products,” says Thomas Schäfer, Chief Executive Officer of Volkswagen Passenger Cars and a Member of the Board of Management of the Volkswagen Group. “We're constantly debating what opportunities we have going forward to bring more halo products to North America to build the brand because this is what differentiates us and builds value for our customers.”
Time to Bring Back the VW Beetle?
Does that call for a return of another icon: the Volkswagen Beetle that helped shaped automotive history with its unique and name and shape that left a cultural stamp and is recognized worldwide? The last version, the New Beetle, ended production in 2019.
The Beetle could come back as a limited-edition model in the future, but it would need a sustainable business model for it to work—and that is not where the executive team’s head is at, says Andrew Savvas, Chief Sales and Marketing Officer at Volkswagen North America.
Bringing back a version of the Beetle for the U.S. “would be quite beneficial from an image perspective,” Savvas says. "You think of the iconic moments in the American counterculture and the part that Volkswagen played. Very few brands can do that, and we have to tap into that," Savvas added.
But with the Beetle, the business case is tricky. The Beetle was extremely successful at launch, especially in North America, “but cars like that taper off, as well,” Savvas says.
VW does not need the Beetle right now to showcase the brand. “Things like the Buzz will do that and obviously GTI does that as well, because that's what sends goosebumps into people. That, to us, is our strength, that we're a fun-to-drive product,” Savvas says.
For North America, Savvas would rather focus on GTI and the R brand than push for a reincarnation of the Beetle. “It would not be my priority in the short term. Let's take the strong and beautiful cars we've got and bring iconic halo variants like the R Line or the GTI into those things. That's where our strength is.”
ID7 Still Not a Go for U.S.
Another vehicle North America is waiting for is the Volkswagen ID7 midsize sedan, which was to come to the U.S. in 2024, but those plans have been delayed. VW needs to bring a car that will be successful, and not a small-volume, niche model. “We really need products that can drive volume in North America,” Schäfer says.
Nothing has changed since VW made the decision in May to delay its launch in the U.S. and Canada due to changing market conditions. The car is doing well in Europe, Schäfer says.
Management is being cautious with North America, which is even more important as the brand struggles in China and faces more competition and overcapacity in Europe. North America is Volkswagen’s focus region, with more allocated budget, says Schäfer. “In the past North America has not played as important a role as it will play going forward.”
Kjell Gruner takes over as the new CEO of Volkswagen Group of America on December 12, replacing Pablo Di Si. Gruner, who comes from Rivian but spent much of his career at Porsche, with stints at DaimlerChrysler and Mercedes-Benz. Schäfer says the new North American chief will focus on offering a global portfolio, albeit locally adapted. We have heard this before from VW. Perhaps this time it will be different.
Alisa Priddle joined MotorTrend in 2016 as the Detroit Editor. A Canadian, she received her Bachelor of Journalism degree from Carleton University in Ottawa, Ontario, and has been a reporter for 40 years, most of it covering the auto industry because there is no more fascinating arena to cover. It has it all: the vehicles, the people, the plants, the competition, the drama. Alisa has had a wonderfully varied work history as a reporter for four daily newspapers including the Detroit Free Press where she was auto editor, and the Detroit News where she covered the GM and Chrysler bankruptcies, as well as auto trade publication Wards, and two enthusiast magazines: Car & Driver and now MotorTrend. At MotorTrend Alisa is a judge for the MotorTrend Car, Truck, SUV and Person of the Year. She loves seeing a new model for the first time, driving it for the first time, and grilling executives for the stories behind them. In her spare time, she loves to swim, boat, sauna, and then jump into a cold lake or pile of snow.
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