Volkswagen Discontinues DSG Transmission in Non-Enthusiast Vehicles

Dual-clutch automatic transmissions have become increasingly rare at VW.

At the launch of the 2025 Taos in Orlando, Florida, on Thursday, Volkswagen told Motor Authority that the DSG dual-clutch automatic transmission is now dead in the United States, except in some performance vehicle applications, and It said.

The 2024 Taos, a subcompact crossover SUV, was the last major model in which Volkswagen's DSG (direct shift gearbox) would be paired with an all-wheel drive model. Front-wheel drive models had already moved to a conventional 8-speed automatic transmission with torque converter. The refreshed 2025 Taos completely eliminated the dual-clutch transmission, and all models now have an 8-speed automatic.

“It was a test for the Taos. When you have a hatchback and you need an SUV, you move out of the GTI; the question was whether mass adopters moving from a small car like the GTI would find it nice, and we listened to our customers,” Melinda Godec, VW's product manager, told MA.

Godek said the Taos is a conquering car that will take market share and buyers away from competitors. Those competitors did not have dual-clutch automatic transmissions, and the DSG did not meet their driving expectations. The problem stemmed from the smoothness of the shifts and the engagement of the transmission from the line; with the DSG, there is a time lag before the clutch engages when moving forward from a stop.

“We need to accommodate them [customers] where they are and not expect altered behavior,” Godek said.

The last vehicles to inherit VW's DSG are the Jetta GLI sports sedan and the Golf GTI and Golf R hot hatches.

Godec said Volkswagen is seeing an increase in sales volume due to the U.S.-specific build configuration for consumer preferences.

Volkswagen introduced DSG with the 2003 Mk IV Golf R32 hot hatch, but the transmission was not introduced in the U.S. until the 2007 Mk V R32.