Volkswagen puts niche cars on ice as it focuses on ‘core line-up’

Volkswagen won’t launch any niche or low-volume models until it has built the “perfect fleet of vehicles”, CEO Thomas Schäfer has said.

The German brand doesn’t currently “have the money to gamble” on cars that won’t be part of its core line-up, he said, suggesting the Arteon and T-Roc Cabriolet won’t be renewed for new generations.

Schäfer indicated that significant challenges in introducing such vehicles, including concerns about sales and investment sacrifices, are reasons for “continuous debate every year” at Volkswagen. 

What’s more, significant and costly challenges mean keeping the line-up “truly core” – the Touareg SUV, Golf hatchback and ID range of electric cars, for instance – is itself a difficult task, requiring sacrifices to be made elsewhere.

“We have to invest in hybridisation, Euro 7 and beyond,” Schäfer said. “It’s quite a stretch to afford it all, and you need to keep your portfolio – the core – together, and then you work on niche products.

“In the past, we had quite a bit of niche products, and I’m not saying that we don’t bring them back, but not at the moment. We have to keep the main business healthy. That’s the main focus.”

However, the former Skoda boss implied it isn’t a cut-and-dry approach, with thought being made about what niche models could be added in the future, once financial hurdles are overcome.

He said: “What else can we add? The core is clear. What we have in our portfolio now, I think, is truly core, from the small hatches to the SUVs, all the way up to big SUVs and station wagons [estates].

“But you know, more niche things like the Scirocco [coupé] used to be, like the Touran [MPV] used to be, those kind of vehicles… they have a place in our overall view.”