Crossovers claim another victim: Passat

FRANKFURT — The great migration from cars to light trucks is claiming another casualty. Volkswagen will drop the Passat sedan in the U.S. and Europe as the automaker prioritizes electric and utility vehicles, company sources familiar with the plans said.

In Europe, VW will keep only the Passat station wagon when a new generation of the midsize car arrives toward the end of 2023, sources told Automotive News Europe. The wagon will continue in markets such as Germany, where the body style is popular.

U.S. sales of the Passat increased 25 percent during the first three quarters, according to VW of America data, but were low at just 16,190 units.

While it never seriously challenged the Toyota Camry and Honda Accord, U.S. sales of the Passat did reach just over 100,000 as recently as 2012 and 2013.

The Passat is Europe's No. 1-selling midsize model, with a volume of 88,478 through October, according to JATO Dynamics.

Management has no plans to replace the current U.S. version because of the continued shift from sedans to crossovers, such as the Atlas.

The U.S. version of the Passat is built at VW's plant in Chattanooga, where the automaker also produces the Atlas — the VW brand's No. 3-selling model in the U.S. after the Tiguan and Jetta. Atlas sales fell 37 percent to 37,927 in the first three quarters of this year. VW tallied an additional 17,990 sales of the newly introduced Atlas Cross Sport over the same period.

U.S. buyers have become even less enthusiastic about the midsize sedan segment, sealing the fate of the Passat. U.S. sales of midsize cars, once a cornerstone of industry volume, have steadily dropped in recent years, with volume down 27 percent in the first three quarters of this year, after dropping 8 percent in 2019.

Some brands — notably Ford, Chrysler, Buick and Dodge — have already abandoned the segment.