VW’s Flagship SUV Is Being Phased Out As It Bets On Cheaper Models

The German brand is reportedly preparing to pull the plug on the Touareg after 23 years of service

 VW’s Flagship SUV Is Being Phased Out As It Bets On Cheaper Models

  • The Touareg will reportedly be axed with no direct replacement planned.
  • VW is shifting focus to higher-volume models like the Tiguan and Tayron.
  • Premium SUV buyers will now be served by Audi and Porsche within the group.

The future of VW’s flagship SUV may be coming to a quiet close. The Touareg, currently the most premium and expensive model in Volkswagen’s global lineup, is reportedly set to end production in 2026. No successor is expected, as the brand turns its focus toward more profitable vehicles in core, high-volume segments.

According to a report from Autocar citing insider sources, the decision reflects shifting priorities within VW’s headquarters in Wolfsburg. While Volkswagen has not officially confirmed the move, it would be in line with the company’s broader strategy to streamline its portfolio and double down on its strongest-performing categories. We’ve contacted a VW for comment and will update this story if we hear back.

A Legacy That Helped Shape the Group

Launched in 2002 as a sister model to the Porsche Cayenne, the original Touareg was a passion project of then-chairman Ferdinand Piech, aimed at elevating the VW brand alongside the now-discontinued Phaeton luxury sedan.

The luxury SUV not only broadened Volkswagen’s appeal but also played a key role in spreading development costs for the first Porsche Cayenne, which would go on to become a crucial success story for the Stuttgart-based brand.

More: Here’s The New VW T-Roc Before You’re Supposed To See It

The second-generation Touareg followed in 2010, and the current third-generation model, which never came to North America, arrived in 2018. It shares the MLB Evo platform with other high-end VW Group models, including the Audi Q7 and Q8, Porsche Cayenne, Bentley Bentayga, and Lamborghini Urus. The most recent update came in 2023. If the model does wrap up in 2026, it would mirror the eight-year lifecycle of its predecessors.

VW Touareg R

What Fills the Gap?

Volkswagen’s exit from the premium SUV segment leaves room for sibling brands like Audi and Porsche to handle upmarket duties. Meanwhile, VW will continue focusing on volume sellers such as the Tiguan, currently the brand’s global bestseller.

Anyone looking for a larger VW SUV could take a look at the Tayron, essentially the European version of the US-market Tiguan. Though smaller and less upscale than the Touareg, it adds versatility with a three-row option—something the Touareg never offered. It also comes equipped with a solid tech package that helps bridge the gap.

More: The Tiguan R Could Return Stronger Than Ever

Further up the size chart, models like the Terramont and Talagon, both based on VW’s MQB platform, are expected to take on flagship status within the lineup. A similar shift already happened in North America, where the Atlas (known elsewhere as the Terramont) indirectly replaced the Touareg after its discontinuation in 2017 due to low sales.

Other Models On The Chopping Block

Besides the slow-selling Touareg, Volkswagen is getting ready to say goodbye to another SUV, the fully electric ID.5. The coupe-SUV that was introduced in 2021 will reportedly be axed in 2027 after a single generation. The reason is that the ID.5 didn’t even come close to the popularity of its high-volume ID.4 sibling, which is about to receive a comprehensive mid-lifecycle update next year.

More: VW’s Best-Selling EV May Return With A Whole New Identity

In addition, VW has reportedly shelved plans for a compact, fully electric minivan that would have replaced the Touran. The MEB-based model was envisioned as a smaller, more affordable alternative to the ID. Buzz. However, sources say the board ultimately rejected the idea, citing a market that continues to favor SUVs and crossovers over MPVs.

Complicating matters further, VW’s R&D hub in Braunschweig is said to be operating at full capacity, with resources now being directed toward core projects like the electric successor to the Golf.

 VW’s Flagship SUV Is Being Phased Out As It Bets On Cheaper Models

H/T to Autocar

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