It's consolidating models, slowing down and putting more value into it.
Volkswagen is reducing the number of lines for its Chattanooga-made Passat for the 2019 model year as the company plans to produce an all-new version of the midsize sedan for 2020.
The 2019 Passat will be offered in just two trim lines in the U.S., or about half as many as it currently sells, according to the German automaker.
Also, VW is starting the 2019 Passat, which will go on sale later this year, at about $2,300 more than the 2018 base model, though it's increasing the content in the vehicle.
"It's consolidating models, slowing down and putting more value into it," said Michael Hartley, an analyst for Kelley Blue Book. "The base model [Passat] S didn't have a lot stuff."
He said the existing Passat is nearing the end of its life cycle. VW plans to produce the first all-new version of the sedan in the 2020 model year since U.S. production of the vehicle started seven years ago in Chattanooga.
Typically, customers often hold out for the new models, Hartley said.
So for the 2019 model year, the Passat is offered in just two trims - the Wolfsburg Edition and SE R-Line. Both will be equipped with a 2.0-liter TSI engine, according to VW.
Also, the two lines will include standard features such as forward collision warning and autonomous emergency braking, blind spot monitor, and rear traffic alert.
The Wolfsburg Edition replaces the outgoing base S trim. It upgrades 16-inch aluminum-alloy wheels to 17-inch wheels and trades the entry-level infotainment system with a 5-inch touchscreen for one with a 6.3-inch touchscreen.
Also, the Wolfsburg Edition will have Volkswagen Car-Net App-Connect, SiriusXM radio, and voice control. In addition, upgrades include keyless access with push-button start, leatherette seating surfaces, and leather steering wheel along with heated front seats and side mirrors.
The SE R-Line model features a more sporty exterior and interior treatments of the outgoing R-Line model, including LED headlights along with daytime running lights and taillights. Other standard features previously found only in the top Passat trims include "discover media" infotainment with navigation, ambient lighting, easy open trunk, and adaptive cruise control.
Pricing for the 2019 Volkswagen Passat starts at $25,295 compared to $22,955 currently.
Antonio Pinto, chief executive for Volkswagen Chattanooga, said earlier this summer that the factory is slated to start production of the fully redesigned 2020 Passat early next year. That vehicle will go on sale later as a 2020 model.
"I drove it," Pinto said. "It's worth it. People will like it."
The Passat changes come as sales of the sedan, like the entire industrywide segment, have fallen off as buyers turn to SUVs and pickup trucks.
Through August, Passat's U.S. sales were 30,232, down 34.3 percent for the year.
But Hartley said he expects VW will continue to sell midsize sedans as long as competition such as Toyota, Honda and Nissan do so.
He said the Passat is sold worldwide. The U.S.-made Passat, which is larger than the European-produced version, is sold in the Middle East and in Korea.
VW's Chattanooga plant employs about 3,500 people making the Passat and the seven-seat Atlas SUV. Also next year, a five-seat Atlas SUV is slated to be produced at the plant.
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318. Follow him on Twitter @MikePareTFP.