Volkswagen Costs Are Out Of Control After Bad Bets On ICE Power And Tariffs
Posted on 3/10/2026 by Agent009
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The last several years haven't been easy for Volkswagen, and this past one was no different. Across all markets, total sales are down, and so are revenues and profits. A number of issues are contributing to the automaker's woes, and among them is the unexpected demand for combustion engines, particularly in brands including Scout and Porsche. Even though the brands need to meet customer demands, it's costing them big.
 
Scout is quite the pain point for VW, since it keeps costing money, and it doesn't have anything on sale yet. CarBuzz listened in on VW's investor call, and the company revealed that costs for Scout have risen by €1.2 billion, apparently driven by the need to prioritize the range-extended version. As we've previously reported, 85% of Scout reservations have been for the range-extender, and the automaker wasn't expecting such high demand.