Volkswagen has warned that the end is near for small gas cars

Published on Dec 31, 2025 at 8:17 AM (UTC+4)
by Alessandro Renesis

Last updated on Dec 30, 2025 at 9:17 PM (UTC+4)
Edited by Amelia Jean Hershman-Jones

Volkswagen CEO Thomas Schäfer said the quiet part out loud and admitted that small gas cars – including icons like the VW Polo – are on the way out.

He didn’t mention the Golf specifically, but it’ll probably suffer the same fate.

This marks the end of an era – but who is ‘to blame’?

There are essentially two culprits.

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This is why Volkswagen no longer wants to build small gas cars

Speaking with Auto Motor und Sport, Volkswagen CEO Thomas Schäfer said models in the B-segment will no longer be available as internal combustion vehicles in the future.

“The future in this segment is electric,” he said.

For reference, the B-segment is equivalent to the ‘subcompact’ category in North America.

The VW Polo, the Ford Fiesta, the Toyota Yaris – these are all B-segment cars.

Who’s to blame, then?

Market dynamics and market regulations.

Subcompact cars have always been popular in Europe and emerging markets, but have failed to gain traction in North America, China, and Japan.

And the problem is that, according to Schäfer, engineering small gas engines to meet upcoming emissions standards in Europe is too expensive, and it makes more sense to share existing electric platforms across more models.

Put simply, these cars are popular in the only market that’s making it difficult to keep building them legally.

Why the VW Golf will probably suffer the same fate

The Volkswagen Golf is not a B-segment car, but it’ll probably suffer the same fate.

Even though Schäfer hasn’t mentioned it on this occasion, the CEO made it clear in the past that the Golf Mk9 – the next Golf – will be electric only.

This means the GTI will also be electric.

Time will tell, and more importantly, the market will eventually dictate what happens next.

So far, buyers have made it clear that EVs are absolutely in demand, but with exceptions.

What’s more, earlier this month, Ford scrapped the all-electric F-150 because people just weren’t buying it, suggesting the entire automotive market could be heading in the same direction.

Experienced content creator with a strong focus on cars and watches. Alessandro penned the first-ever post on the Supercar Blondie website and covers cars, watches, yachts, real estate and crypto. Former DriveTribe writer, fixed gear bike owner, obsessed with ducks for some reason.