Volkswagen has reportedly attributed the price increase to the significant cost increases in the procurement of raw materials, energy, and equipment. The price increase will be an average of 4.4% and will affect five models in its home country of Germany, including the Golf, Tiguan, Passat wagon, Polo, and T-Roc.
Of these models, only the Tiguan is sold in North America, and there have been no reports of price changes for the model in the region.
"Even Volkswagen cannot escape high inflation," VW said. "Although we are working as best we can with long-term contracts, hedging transactions and efficiency increases, the effect on costs cannot be fully compensated." The automaker also declined to provide further information about whether additional price changes are expected in North America.
German Volkswagen dealerships have expressed concern over the decision, with one dealer stating, "I'm stunned. Our sales are falling, and they are raising prices." Another dealer noted that the automaker previously increased prices by almost 11% between mid-2021 and mid-2022.
Sources: Automotive News Europe, Carbuzz