Volkswagen model is elevating the costs for fashions with combustion engines by a median of 4.4 %, the automaker’s sellers in Germany have been advised.

VW stated “important price will increase within the procurement of uncooked supplies, power and gear” was the explanation for the value hikes in a letter to sellers obtained by Automotive Information Europe sister publication Automobilwoche.

Well-liked fashions such because the Golf, Tiguan, Passat wagon, Polo and T-Roc are included within the worth will increase.

The rises are because of take impact on Feb. 23.

“Even Volkswagen can’t escape excessive inflation. Though we’re working as finest we will with long-term contracts, hedging transactions and effectivity will increase, the impact on prices can’t be absolutely compensated,” VW stated.

Sellers criticized the transfer.

“I am surprised. Our gross sales are falling and they’re elevating costs,” stated a VW supplier who requested to stay nameless.

Automakers needs to be chopping costs due to shopper uncertainty amid the present financial surroundings, sellers say.

Antje Woltermann, fom ZDK German supplier and restore affiliation, stated: “Incoming orders go away rather a lot to be desired. Producers have to contemplate whether or not their costs are nonetheless in keeping with the market.”

VW is just not the one automaker elevating costs for brand new fashions.

Final 12 months, the common worth of a brand new automotive elevated by a median 5,000 euros, in accordance with the automobile information gathering firm Deutschen Automobil Treuhand.

One VW supplier stated the automaker had raised costs by practically 11 % between mid-2021 and mid-2022.

Prospects shopping for automobiles by means of financing provides should additionally pay extra. Rates of interest have risen by greater than 5 %, in accordance with the Check24 worth comparability web site.

Reuters contributed to this report