volkswagen On Tuesday it announced updates to its 2025 Jetta sedan to boost sales amid industry-wide affordability concerns.
The base version of the Jetta with automatic transmission will start at $21,995 when it goes on sale, expected at the end of the third quarter, the company said. That model will replace the current lower-priced Jetta model, which has a manual transmission and has had limited sales as many drivers only know how to drive vehicles with automatic transmissions.
The changes come amid concerns about vehicle affordability and rising vehicle inventories after years of limitations due to the coronavirus pandemic and supply chain issues.
The Jetta's new starting price compares to the average transaction price for a new car sold in May of $47,455, according to Cox Automotive.
Volkswagen Group of America CEO Pablo Di Si told CNBC earlier this year that he saw opportunities for the automaker to better leverage the Jetta in North America.
“Everyone has a story with VW, particularly with the Jetta,” he said during an interview in February, citing a 60% increase in Jetta production in recent years.
Overall, sales of cars like the Jetta have fallen from historic levels amid the rise of crossovers and SUVs. But Jetta sales rose 24% last year to about 47,400 units in the United States, making it VW's fourth-best-selling vehicle in its U.S. lineup.
The company also announced Tuesday that the 2025 Jetta will feature modified exterior and interior styling, as well as additional standard features.
The 2025 Jetta will come standard with a 158-horsepower 1.5-liter turbocharged inline-four engine, paired with a standard eight-speed transmission. A high-performance “GLI” model will still offer a manual transmission.
2025 Volkswagen Jetta GLI
Volkswagen