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Volkswagen Leads European EV Sales – Daily Car News (2026-01-21)
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Volkswagen Leads European EV Sales – Daily Car News (2026-01-21)

T
Thomas Nismenth Automotive Journalist
January 21, 2026 6 min read

Today’s Auto Brief: VW edges Tesla in Europe, Subaru reshuffles, and budget cars steal the spotlight

I spent the morning hopping between phone calls with dealers, owners in my inbox, and a lukewarm takeaway flat white. The theme? Value. Europe’s flocking to budget hatchbacks, Subaru’s trimming and tidying, and even the once-inevitable robotaxi narrative is getting a dose of cold arithmetic. Let’s unpack what matters—without the fluff.

Europe: Volkswagen takes EV gold as budget small cars run the show

Editorial automotive photography: Volkswagen ID.4 as the hero subject. Context: Volkswagen has become the biggest seller of EVs in Europe.. Setting: A

According to fresh reporting, Volkswagen has overtaken Tesla as the biggest seller of EVs in Europe. If you’ve driven the latest crop of VW electric hatchbacks and crossovers, that result feels less like a shock and more like the market finally paying attention to breadth of lineup and dealer reach.

At the same time, Europe’s best-selling model of 2025 wasn’t a premium crossover—it was a budget small car. That tracks with what I’ve seen on recent trips: tidy city cars and frugal hatches lining curbs in Lisbon, Lyon, and Leipzig. The post-pandemic wallet has a long memory, and buyers are voting with their monthly payments.

Adding fuel to the fire, a new budget compact car from Europe is reportedly on the way. If it lands with the right mix of safety tech, efficient engines (or a clever mild-hybrid), and a price that starts below the psychological threshold, it could be another “why spend more?” moment for city and suburban drivers.

  • VW leapfrogs Tesla in European EV sales—scale and showroom muscle count.
  • Europe’s top seller in 2025: a budget small car. Value still trumps vanity.
  • Another wallet-friendly compact is reportedly inbound to keep pressure on the segment.

Subaru 2026: Impreza trims back, Crosstrek adds kit (and cost)

Editorial lifestyle/context image for automotive news: Theme: industry. Scene: An automotive factory scene showing workers assembling the new budget cars.

Subaru’s doing a tidy-up for 2026. Reports say the Impreza lineup is being cut down with prices up, while the Crosstrek gets more tech and new colors—also for more money. When I last spent a wet week with an Impreza, the calm ride and easygoing character made it a perfect commuter; slash a few trims, and you’ve essentially told buyers which spec to pick without the paralysis.

The Crosstrek? On rough roads and fire trails it’s a sweetheart—tough little sidewalls, good clearance, and a cabin that shrugs at muddy boots. If the “more tech” translates to updated driver assists and a nicer screen, it’ll land well with the weekend-warrior crowd. The price creep is real across brands, but Subaru’s usually good at making the extra spend feel tangible.

Model Lineup change Price trend New tech New colors Best for
2026 Subaru Impreza Trim range reduced Up Refined feature mix (per report) Not the focus Urban commuters who want fuss-free comfort
2026 Subaru Crosstrek Stable lineup Up More features added New hues Weekend hikers, snow trip regulars, gravel-road explorers
  • What I noticed in prior drives: Subaru’s road noise control and foul-weather confidence make daily life easy.
  • Watch for: real-world infotainment responsiveness; some past units lagged on cold starts.

Powertrain crosswinds: GM’s V8 probe and a fuel-cell partnership split

On the internal-combustion front, more GM V8 engine failures have prompted a new safety probe, according to reports. If you’ve lived with a big American V8, you know the soundtrack and torque are half the purchase decision—so hearing about failures is a gut punch. Owners I’ve spoken to tend to keep impeccable maintenance logs; if you’re one of them, start a paper trail and watch for official communications.

Editorial automotive comparison shot: Volkswagen ID.4 alongside Tesla Model Y. Context: The comparison is drawn from Volkswagen overtaking Tesla in European EV sales.

In alternative propulsion, GM and Honda are parting ways on fuel cells, with ripple effects reportedly landing on the CR-V’s ambitions. Partnerships are everything in niche tech—without a deep-pocketed dance partner, costs can balloon and timelines slip. Hydrogen remains promising for heavy-duty use, but for passenger cars, the business case keeps hitting speed bumps.

  • If you own an affected GM V8: document service history, monitor for unusual noises or warnings, and consult your dealer for guidance.
  • Fuel cell takeaway: R&D is expensive. Breakups often mean revised timelines or a pivot to hybrids/BEVs.

Luxury curios: a secret ute and a flashier SL

A luxury brand’s “secret ute” project has reportedly surfaced. The idea isn’t as wild as it sounds; premium-badged pickups and high-lift wagons have loyal followings where surfboards and suit jackets share trunk space. If executed properly—good payload, clever storage, and an interior that still feels special—it could be a clever halo for lifestyle buyers.

Over at Mercedes, the facelifted SL is said to have found a new way to stand out. The SL has always been the suave one in a garage—roof down, long hood, light on its feet if you spec it right. A visual flourish or two won’t hurt; the trick is keeping weight down and steering feel up, something I’d love to recheck on a winding coastal road at dawn.

Deals and drama: Hornet fire-sale pricing and a Hollywood-style PIT

With the model discontinued, new Dodge Hornets are reportedly being advertised for nearly half the original sticker in some cases. That’s eyebrow-raising value if you’ve been hunting for a compact crossover with a bit of attitude. Usual caveats apply: confirm warranty terms, verify software updates, and check dealer support for parts long term.

In wild footage territory, a Beverly Hills police pursuit ended with a box truck flipped via PIT maneuver. You don’t see that every day on Wilshire. It’s a reminder that physics always wins, and also that brake maintenance on fleet vehicles is not optional.

Robotaxis meet the spreadsheet: the case for caution

Editorial macro/close-up automotive photography: robotaxi technology. Show: A close-up of the sensors and cameras on a robotaxi vehicle, illustrating

An opinion piece today digs into the hidden flaws in the robotaxi business case. I’ve heard similar concerns from analysts over coffees near the test routes: utilization rates are hard to sustain, remote-assist staffing isn’t free, insurance is a moving target, and capital costs are heavy. None of that means autonomy won’t scale—just that the math has to work outside of pilot zones and PR sizzle.

Feature highlights (the stuff shoppers should note)

  • VW now leads European EV sales, signaling momentum for mainstream electric choices.
  • Budget small cars are Europe’s volume kings; expect more value-focused models soon.
  • 2026 Subaru Impreza: leaner lineup and higher prices; Crosstrek: more tech, new colors, higher prices.
  • GM V8s under a fresh safety probe; keep records and watch for updates.
  • GM and Honda split on fuel cells; CR-V’s fuel-cell plans could shift.
  • Deal alert: deep discounts reported on new Dodge Hornet stock.

Quick takes

  • Small, simple cars are not dead—they’re thriving where wallets are tight.
  • Subaru’s strategy: fewer choices, clearer value props; buyers spend less time on the configurator.
  • Powertrain future: hybrids and BEVs carry the volume while fuel cells regroup.
  • Design still matters: a little glamour can keep icons like the SL fresh.

Conclusion

Today’s news paints a clear picture: the market is barbell-shaped. Budget cars and pragmatic crossovers on one end, glamorous toys and niche tech on the other. In the middle, brands like Subaru are quietly optimizing lineups to keep you from overthinking your next commuter. If you’re shopping this quarter, chase the value—then make sure the tech and warranty support your life, not just the brochure.

FAQ

  • Who leads EV sales in Europe right now?
    Reports indicate Volkswagen has overtaken Tesla as the biggest seller of EVs in Europe.
  • Are 2026 Subaru Impreza prices going up?
    Yes, reports say prices are rising as the lineup is trimmed.
  • What’s new with the 2026 Subaru Crosstrek?
    More tech and new colors are reportedly added, with a corresponding price increase.
  • Is the Dodge Hornet a good buy now that it’s discontinued?
    Deep discounts are being reported. It can be great value if you confirm warranty coverage, software updates, and parts support.
  • What’s happening with GM’s V8 engines?
    A new safety probe has been prompted by additional failure reports. Owners should document maintenance and consult dealers for guidance.
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Thomas Nismenth

Senior Automotive Journalist

Award-winning automotive journalist with 10+ years covering luxury vehicles, EVs, and performance cars. Thomas brings firsthand experience from test drives, factory visits, and industry events worldwide.

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