Summary of "How Volkswagen's Electric Bus Lost Its Charge"
The Journal
Released: July 29, 2025
Hosted by Ryan Knutson and Jessica Mendoza
Produced by The Wall Street Journal & Spotify Studios

Introduction

In the July 29, 2025 episode of The Journal, hosts Ryan Knutson and Jessica Mendoza delve into the tumultuous journey of Volkswagen's highly anticipated electric vehicle, the ID Buzz. Titled "How Volkswagen's Electric Bus Lost Its Charge," the episode explores the factors that led to the disappointing rollout and sales performance of the modern reincarnation of the iconic VW bus.

The Legacy of the Volkswagen Bus

Celebration and Anticipation

The story begins with a nostalgic nod to Volkswagen's first all-electric bus announcement. On January 23, 2023, Volkswagen held its 1st Annual International Volkswagen Bus Day in Huntington Beach, California, celebrating the beloved Type 2 transporter. As Jessica Mendoza notes, "The bus has had a cult-like following for decades, especially with surfers and hippies" (00:55). Hundreds of fans showcased approximately 200 vintage 1960s Volkswagen buses, all meticulously restored, reflecting vibrant colors and classic designs.

Reintroduction of the ID Buzz

At the event, Volkswagen unveiled its North American version of the ID Buzz, marking the company's first foray into all-electric buses. Jessica highlights, "The ID Buzz seemed like the perfect fit for Volkswagen. A car that would capture the hearts of die-hard fans and new EV enthusiasts" (01:58). Expectations were high, given the iconic status of the original bus and the growing interest in electric vehicles (EVs).

Challenges in Production and Development

Internal Struggles and Organizational Issues

Despite the promising outlook, the ID Buzz faced significant hurdles during its development. John Doe explains, "The team that Volkswagen tapped to make the ID Buzz was the arm of the company that produced the original bus. But that team makes commercial vehicles like delivery vans and corporate fleet cars. It doesn't normally make cars for everyday drivers or produce cars for the US Market" (08:11). This misalignment led to production inefficiencies and delays.

Moreover, Volkswagen's internal competition within the Volkswagen Group, which includes brands like Porsche and Audi, exacerbated the situation. As John Doe recounts, "Each of these brands competes with one another for R&D dollars... they weren't getting a lot of help from the other various arms of the company" (09:00). This siloed structure hindered collaboration and problem-solving, delaying the ID Buzz's entry into the market.

Extended Development Timeline

The project timeline further complicated matters. Jessica Mendoza states, "It took nearly a decade for buyers to get their hands on the ID Buzz" (09:56). The automotive industry's typical model development cycle ranges from three to five years, making the ID Buzz's ten-year journey particularly problematic. This extensive delay allowed competitors to gain a significant foothold in the burgeoning EV market.

Market Timing and External Factors

Missed Market Opportunities

By the time the ID Buzz launched in 2024, the EV landscape had evolved dramatically. Brands like Tesla had solidified their dominance, and legacy automakers such as Ford and Cadillac, along with startups like Rivian and Lucid, had introduced compelling EV models. John Doe observes, "Volkswagen managed to sort of miss the crest of the wave that it hoped to ride" (10:32).

Political and Economic Setbacks

Compounding Volkswagen's internal struggles was the unfavorable timing of the ID Buzz's market entry. The vehicle debuted in the wake of a challenging political climate, with policies under the Trump administration aimed at reducing EV incentives. Jessica Mendoza remarks, "You couldn't have picked a worse moment to launch, launch this vehicle" (11:04). This timing significantly dampened consumer enthusiasm and purchasing power for the ID Buzz.

Reception and Sales Performance

High Costs and Limited Range

Upon its release, the ID Buzz faced criticism on several fronts. Pricing emerged as a major barrier; the vehicle started at a staggering $60,000, with top-tier models approaching $70,000—prices aligning more with luxury brands like Mercedes-Benz than Volkswagen's traditional market positioning. John Doe highlights, "60 to $70,000 is very squarely in Mercedes Benz, not Volkswagen territory" (12:50).

Additionally, the ID Buzz's range fell short of consumer expectations. Due to its bulky design, the vehicle could only achieve a maximum range of 234 miles per charge, compared to the industry average of 300 miles. Jessica Mendoza explains, "Because of its bulky shape and size, the ID Buzz isn't very aerodynamic. It needs a lot more power to move" (13:35).

Practical Oversights and Recalls

Further undermining the ID Buzz's appeal were practical design oversights that led to recalls. The vehicle's expansive back row lacked sufficient seatbelts, and the brake warning signs were incorrectly displayed. Jessica notes, "These mistakes forced Volkswagen to recall the Buzz twice" (14:56). Additionally, the absence of a cup holder in the second row disappointed consumers accustomed to such amenities.

Underwhelming Sales Figures

Sales numbers mirrored these challenges, with the ID Buzz struggling to sell even 5,000 units since its 2024 release. John Doe comments, "They sort of haven't even cracked 5,000 yet... it's certainly not something that they hoped would be, you know, sort of an iconic rebirth of a vehicle" (16:40).

Impact on Volkswagen's Brand and Strategy

Erosion of Market Share and Brand Trust

The ID Buzz's failure has had tangible repercussions for Volkswagen. The company's inability to successfully reintroduce a flagship vehicle has eroded its market share and strained its brand reputation. John Doe explains, "Volkswagen has sort of lost market share since the bus and the Beatles stopped selling in the US and have been trying to recapture that ever since" (17:09).

Strategic Recalibration

In response to the ID Buzz's poor performance, Volkswagen finds itself back at the drawing board. The episode underscores that Volkswagen's reliance on nostalgia and heritage has not translated into contemporary success. Jessica Mendoza summarizes, "They can't quite decide what it wants to be to Americans... they are going back to the drawing board" (17:25).

Broader Implications for the EV Industry

Nostalgia vs. Innovation

The ID Buzz serves as a cautionary tale for the broader EV industry. While leveraging brand heritage can generate initial interest, sustainable success requires aligning with current market demands and technological advancements. John Doe states, "You can't just keep going to the well and slapping batteries on the vehicles that we used to buy... they're going to have to come out with something fresh and new" (18:09).

Market Dynamics and Consumer Expectations

The episode highlights the dynamic nature of the EV market, where consumer expectations are rapidly evolving. Volkswagen's struggles illustrate the critical need for agility and innovation in a highly competitive landscape. As Jessica Mendoza puts it, "It's proving to be a struggle for them" (19:31).

Conclusion

The ID Buzz's journey from an eagerly awaited electric revival to a market disappointment encapsulates the intricate challenges automakers face in today's EV-driven landscape. Volkswagen's experience underscores the importance of strategic alignment, timely execution, and genuine innovation over reliance on nostalgic appeal. As the EV market continues to evolve, Volkswagen and other legacy automakers must navigate these complexities to achieve lasting success.

Notable Quotes with Timestamps:

• "The bus has had a cult-like following for decades, especially with surfers and hippies." — Jessica Mendoza (00:55)
• "The ID Buzz should have been a runaway success... But it's been an utter disappointment." — John Doe (02:14)
• "Each of these brands competes with one another for R&D dollars... they weren't getting a lot of help." — John Doe (09:00)
• "It took nearly a decade for buyers to get their hands on the ID Buzz." — Jessica Mendoza (09:56)
• "You couldn't have picked a worse moment to launch, launch this vehicle." — Jessica Mendoza (11:04)
• "60 to $70,000 is very squarely in Mercedes Benz, not Volkswagen territory." — John Doe (12:50)
• "These mistakes forced Volkswagen to recall the Buzz twice." — Jessica Mendoza (14:56)
• "They sort of haven't even cracked 5,000 yet." — John Doe (16:40)
• "You can't just keep going to the well and slapping batteries on the vehicles that we used to buy." — John Doe (18:09)

This summary was generated based on the transcript provided and adheres to the guidelines for clarity, engagement, and comprehensive coverage of key points discussed in the episode.