Why Did Volkswagen Discontinue The Arteon?

In June 2023, Volkswagen announced that 2024 would be the final model year for the Arteon midsize family sedan, with the hatchback sticking around till 2026. For Americans, though, it makes little difference since the hatchback was never offered for sale in the North American market. It marked the end of the line for the carmaker's premium offering in the midsize segment, typically reserved for larger, more luxurious sedans and fastbacks.

The Arteon's name — derived from the Latin word "Artem" ("art" in English) — reflects Volkswagen's emphasis on its design, underscored by features like the wraparound grille and overall sleek profile. First introduced in 2017, the Volkswagen Arteon was billed as an upscale offering targeted at buyers seeking a more premium sedan or hatchback alternative.

The Volkswagen Arteon received praise for an unusually bold design from the typically conservative carmaker. However, its launch coincided with a shift in consumer preferences towards crossovers and SUVs. There was also a general lack of enthusiasm among American buyers, with shoppers preferring the Arteon's rivals like the Audi A5. In 2022, for example, only 1,742 Arteons were sold in the U.S. — compared to over 18,000 units for the Audi A5.

This dismal sales performance, coupled with Volkswagen's desire to focus on more profitable models as part of its Accelerate Forward program, spelled the end for what was incidentally one of the brand's best-looking modern models.

While its sales figures told a different story, the Volkswagen Arteon was a compelling package with a seamless blend of style and performance. Available only as a fastback in America, initial models got a 2.0-liter turbocharged four-cylinder engine that put out 268 horsepower and 258 lb-ft of torque, paired with an eight-speed transmission. Front-wheel-drive and 18-inch wheels came as standard, but Volkswagen offered optional all-wheel-drive and 19-inch wheels.

For the 2022 model year, Volkswagen enhanced the turbocharged engine, increasing the output to 300 horsepower and introducing a seven-speed dual-clutch transmission. This power plant, while not blistering, still offered respectable performance, allowing the Arteon to accelerate from 0-60 mph in 4.6 seconds.

The fastback design also gave the Arteon the practicality of a hatchback, with the large rear liftgate opening to reveal a 27-cubic-foot space, comparable to the Volkswagen Taos SUV. The Volkswagen Arteon was not perfect, but it checked off a lot of boxes. It just happened to have fallen victim to the times in a rapidly evolving and highly competitive automotive space.

Volkswagen axed the Arteon without plans for a direct replacement. At the time, the carmaker's strategy shift involved a focus on high-volume, more profitable models that aligned with market realities.

One of the core pillars of Volkswagen's forward-looking plan involved an aggressive investment in electric vehicles (EVs). The company aimed to electrify a substantial portion of its lineup, introducing a diverse range of battery-powered cars and SUVs. In 2019, the German automaker even announced plans to release as many as 75 all-electric models over the next decade.

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However, in recent times, Volkswagen has had to reign in some of its ambitious goals regarding the introduction of electric vehicles. There is still the ID family range of EVs, which continues to expand. However, the company has admitted that more plug-in hybrids will be needed to help bridge the profit gap as EV sales decline.

So, while there may be no plans for a direct Arteon replacement for now, the nameplate could make a comeback on a plug-in hybrid or even a fully electric model. Time will tell.