Also for bestsellers

VW increases prices for combustion models

In the previous year, the automotive group was still paying out high dividends to its shareholders - now the company is struggling with its financial difficulties.

(Bild: APA/dpa/Julian Stratenschulte)

VW needs money. Urgently. Cost-cutting measures have not been enough so far, now the Wolfsburg-based company wants to tighten the screws on the revenue side: German media cite a dealer circular announcing price increases.

Almost all combustion models are affected, as reported by "kfz-betrieb" and "Automobilwoche". The industry magazines have a circular letter that VW has sent to its German dealers. According to the letter, some equipment options will also be increased.

The highest surcharge of just under 2500 euros is to be applied to the newly updated Touareg SUV, while the smallest increase of around 500 euros is to be applied to the small Taigo and T-Cross crossovers. The best-selling Golf and Tiguan will each be around 1100 euros more expensive - at around 4 percent each, the increase will be the highest in relative terms.

Among the non-electric cars, only the Polo small car is not affected by the price increase. The e-cars of the ID family are not mentioned in the letter. VW sells these via a so-called "non-genuine agency model", in which dealers have no direct influence on prices.

Regular price increases are not unusual, but the scope and amount of the current round of price increases are. In addition, "kfz-betrieb" reports that a cross-model price increase at Volkswagen was not on the cards back in the spring. The measure could therefore be a reaction to the Group's current problems.

Volkswagen has been trying for some time to increase its narrow profit margin compared to the rest of the industry with an extensive savings program. The Wolfsburg-based company recently announced that it could no longer rule out compulsory redundancies and plant closures in Germany. VW itself does not give a reason for the price increase in the dealer letter.

Porsche Austria confirmed that prices will also be increased in this country in the near future. There is talk of 0.3 to 3 percent.