VW 2025 Jetta updated to boost sales

Volkswagen announced updates to the 2025 Jetta sedan on Tuesday to boost sales amid industry-wide affordability concerns.

The entry-level version of the Jetta with automatic transmission will retail starting at $21,995, expected by the end of the third quarter, the company said. That model will replace the current cheaper model of the Jetta, which has a manual transmission and is only sold on a limited basis because many drivers can only drive cars with an automatic transmission.

The changes come amid concerns about vehicle affordability and growing vehicle inventories after years of restrictions due to the coronavirus pandemic and supply chain issues.

The Jetta's new starting price is comparable to the average transaction price of a new car sold in May, which was $47,455, according to Cox Automobile.

Volkswagen Group America CEO Pablo Di Si told CNBC earlier this year that he saw opportunities for the automaker to better utilize the Jetta in North America.

“Everyone has a history with VW, especially 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 are down from historic levels amid the rise of crossovers and SUVs. But sales of the Jetta rose 24% last year to about 47,400 units in the U.S., making it VW's fourth best-selling vehicle in its U.S. lineup.

The company also announced Tuesday that the 2025 Jetta will have updated exterior and interior styling, as well as additional standard features.

The 2025 Jetta comes standard with a 1.5-liter turbocharged four-cylinder engine with 158 horsepower, mated to a standard eight-speed transmission. A “GLI” performance model will continue to offer a manual transmission.