One of the most popular car brands in the world is set to retire two of its iconic vehicles, in a sign that it is moving away from the premium market.
Volkswagen will end production of the Touareg SUV in 2026, while the popular electric ID.5 will follow in 2027.
Company insiders revealed that the flagship Touareg, which has been manufactured since 2002, will be discontinued after more than two decades.
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The model was originally created alongside Porsche's first Cayenne, sharing its underpinnings as part of former chairman Ferdinand Piëch's strategy to push Volkswagen upmarket.
Volkswagen is set to stop producing two popular models, including the ID.5 EV
|VOLKSWAGEN
The ID.5, which was introduced in 2021 as a sportier variant of the ID.4 with coupe styling, struggled to establish itself in its target markets.
The electric model was developed primarily for Chinese consumers but failed to achieve meaningful sales there.
European buyers similarly showed limited interest, preferring the more practical standard ID.4, while the model was never introduced to American customers.
One senior Wolfsburg source confirmed the vehicle's planned retirement forms part of wider efforts to simplify the product portfolio and focus on models with stronger sales potential.
Production of the Volkswagen Touareg is set to end next year
|VOLKSWAGEN
This withdrawal represents a fundamental shift in the manufacturer's priorities, abandoning its long-held premium ambitions, Autocar noted.
The Tayron will assume the position of Volkswagen's largest SUV offering in Britain, taking over from its more expensive predecessor.
This model provides both five and seven-seat configurations and delivers practical capabilities, including a 2,500-kilogram towing capacity when equipped with the 2.0 TSI 4Motion engine.
The vehicle represents a more affordable option with wider market appeal compared to the outgoing Touareg. Its adaptable cabin layout and competitive pricing position it to attract a broader customer base.
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Previously announced proposals for an electric MPV to replace the Touran have been abandoned, according to company sources.
The vehicle, described by a Wolfsburg insider as a "mini Buzz," would have utilised the MEB platform to create a compact yet spacious family carrier.
A source close to chief executive Thomas Schäfer said: "We looked at it, but the market is demanding crossovers and SUV models. This is the direction we ultimately decided to go in."
The cancellation partly stems from engineering constraints at Volkswagen's Braunschweig research facility.
Volkswagen is the best-selling brand in the UK so far this year
| VOLKSWAGENResources are being directed towards higher-priority projects, particularly the forthcoming electric Golf.
Volkswagen has had an incredibly successful year with 107,608 new cars registered, making it the best-selling brand in the UK.
It has also seen a 10 per cent jump in new registrations compared to the same time last year, when 97,598 cars were sold.
VW's impressive sales figures have helped the German manufacturer capture 9.1 per cent of the total market.