VW CEO Says ID. Buzz Is Priced on the Wrong Foundation, Promises Cheaper Next Generation

Volkswagen’s retro-styled electric van, the ID. Buzz, has not delivered the sales momentum the brand expected when it arrived, and now the company’s leadership is pointing squarely at the numbers behind the vehicle. Brand CEO Thomas Schäfer told British outlet Auto Express that the model simply carries too high a cost structure, which he said prevents it from achieving real volume in the marketplace. In his words, the van sits on a foundation that is too expensive to make it a genuine success.

The figures illustrate the problem. The ID. Buzz launched in early 2022, making it roughly four years old, and when it reached Australia in late 2024 it carried a starting sticker of $79,990 for the Cargo variant and $87,990 for the five-seat Pro. Those prices have edged down only marginally since, leaving the van well above what many family buyers are willing to pay for an electric people mover.

According to Schäfer, the fix lies in a complete second-generation redesign built on Volkswagen’s Scalable Systems Platform. SSP is described by the company as an all-electric, fully digital and highly scalable architecture intended to underpin vehicles across every segment before the decade is out. For the ID. Buzz, that move could translate into longer driving range, quicker charging sessions and more capable software — all areas where the current model has drawn criticism.

Schäfer also hinted that cheaper lithium-iron phosphate battery chemistry could find its way into future iterations, a step that would help bring the van’s price closer to what mainstream buyers expect. LFP packs have become a popular route for automakers chasing affordability without sacrificing everyday usability.

On the design front, Volkswagen’s head of design Andreas Mindt suggested the next ID. Buzz will preserve the lineage of the brand’s past vans and people movers while avoiding the trap of simply repeating a retro formula. He pointed to the New Beetle as a cautionary tale, noting that recycling the same look across generations eventually wears thin with customers. Mindt argued that a plain white van can easily blend into the crowd, and that the ID. Buzz stands out precisely because it is not bland. He declined to share specifics about the upcoming design, but promised the result would be distinctive and carry what he called the company’s secret ingredient.

The takeaway for shoppers is that today’s ID. Buzz may not be the bargain many hoped for, but Volkswagen appears committed to a more attainable, technically newer version down the line.