Key Takeaways
- 2025 Volkswagen Jetta lineup is a facelift, not a new generation, despite being on sale since 2019.
- Interest rates hinder new releases, with VW noticing a trend of downsizing among its clients.
- Jetta remains affordable despite updates, starting cheaper for 2025 than the equivalent 2024 model.
There’s a new Volkswagen Jetta GLI in town for 2025, except it’s not really new; it’s another facelift of the Jetta and Jetta GLI that were already refreshed for the 2022 model year. The seventh-generation Jetta has been with us since the 2019 model year, and with this refresh, its life could be extended until 2027. This would be an eight-year model span, which is much longer than we’d typically see in this segment, and with the Golf 8 GTI being introduced for 2021 and receiving a facelift for 2025, we asked Volkswagen why the Jetta wasn’t in line for an all-new generation. The answer: interest rates are getting too high and VW doesn’t want to alienate customers in this segment.
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“It all ties back in to […] understanding the target customer and the target customer of a compact sedan; we need to be careful where we’re adding costs,” explains Volkswagen’s Melinda Godec, Product Planning Manager for the Jetta lineup. “Ultimately costs do trickle down to the customer, and if we want to offer an affordable sedan, which is where Jetta is positioned, we need to continue to watch costs.”
A Trend Of Buyers Downsizing
One of the biggest issues facing buyers in this segment is interest rates, as Godec explains: “Interest rates are through the roof right now. And we are seeing that customers are having issues with those interest rates. So, I think we made the proper decision here.”
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Adding to that, Mark Gillies explained that the market at present is one of downsizing and tightening of belts. “If you look at what’s happening with us in the market and a lot of our competitors, you’ll see people moving down from a midsize SUV to a compact SUV, or they’re moving down the trim walk from an SEL Premium to an SE w/ Tech,” he explains, even suggesting this belt-tightening exercise has impact EV sales.
“I think it’s one of the reasons why EV sales have leveled off at the moment because EVs are relatively expensive if you’re financing at four or five percent; it’s got a lot more expensive in the past 18 months.”
As a reminder, VW recently delayed the American launch of the ID.7 electric sedan as a result of changing market conditions, a model which was expected to be a big hitter for the brand in the US.
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2025 Volkswagen Jetta Lineup Maintains Affordable Pricing
Despite the improvements made for the 2025 model year, the Jetta lineup is still a huge value proposition, starting at just $21,995 for the base Jetta S, which is now only available with an automatic gearbox. Importantly, this is lower than the price of the 2024 model year Jetta S with the auto ($22,235) making the Jetta a rare phenomenon of a car getting more affordable.
The rest of the lineup’s pricing hasn’t been confirmed yet, but if the base MSRP sets the tone for the rest, the Jetta and Jetta GLI will remain bargains, not just in their segments but in the industry at large. And with meaningful updates made and the MQB platform at its heart, the Jetta still feels current enough to go a few years longer without an all-new generation.
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