By Sean McLain
Volkswagen is pulling the plug on its retro electric bus in the U.S. next year, after the expiration of tax incentives for customers caused electric vehicle sales to tank.
The German carmaker has decided to stop importing the ID. Buzz for now, a company spokesperson said. It will continue to produce the vehicle for other markets.
The bus has been slow to sell since its launch about a year ago, with dealers and customers criticizing its high starting price of around $60,000 as well as its middling battery range of around 250 miles on a single charge.
As a result the vehicle has been piling up on dealer lots even with hefty discounts, according to industry data. There were around 2,600 available for sale at the end of November, equivalent to more than 200 days worth of sales, according to Motor Intelligence estimates. The average for the entire auto industry was 54 days worth of vehicles.
VW told dealers that the move would help better prepare for the transition to model year 2027 vehicles, including the expected return of the Buzz.
Compounding Volkswagen's challenges with the Buzz is a broader decline in EV sales in the U.S., following the end of a $7,500 federal tax credit for EV purchases, which had helped make the pricey technology more attractive to American car buyers. Automakers from Ford to GM have taken financial hits related to the pullback in EVs.
The Volkswagen decision to shelve the vehicle a little more than a year after going on sale in the U.S. underlines how EV sales could struggle in the absence of financial incentives.
When the Buzz was unveiled in 2022, it marked a high point in the excitement surrounding electric vehicles. The vehicle, reminiscent of the iconic VW bus from the 1960s, was also intended to help spearhead a revival of the German brand in the U.S.
Instead the vehicle arrived in late 2024 as EV sales began to flag and just as President Trump started a trade war, imposing tariffs that made the German-made Buzz pricey to import.
The vehicle also struggled with a recall. Its rear seat only had two seat belts but was big enough for three people to squeeze in. Sales were suspended for two months while Volkswagen fit plastic parts to narrow the row.
The bread-loaf shape of the vintage bus also translated poorly to the EV world. The flat face of the Buzz contrasted with most other EVs, which are more aerodynamic to help squeeze more miles out of a battery charge. As a result, the Buzz had a shorter range than many other comparably-sized electric vehicles.
Jessica Caldwell, an analyst at car-shopping website Edmunds, said the combination of a high price tag and an underwhelming battery range ultimately is what led to the vehicle's poor sales.
"I think everyone likes the idea of the Buzz, but in reality are people willing to pay that price with that limited range?" Caldwell said.
Write to Sean McLain at sean.mclain@wsj.com
(END) Dow Jones Newswires
December 19, 2025 17:33 ET (22:33 GMT)
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