Volkswagen kills DSG transmission in non-enthusiast vehicles

The dual-clutch automatic transmission’s rarity at VW just increased.

At the reveal of the 2025 Taos on Thursday in Orlando, Florida, Volkswagen told Motor Authority its DSG dual-clutch automatic transmission is now dead in the U.S. aside from some performance vehicle applications.

The 2024 Taos subcompact crossover SUV was the last mainstream holdout to offer the automaker’s DSG (Direct Shift Gearbox), where it was paired with the all-wheel-drive model. Front-wheel drive models had already moved on to a conventional 8-speed automatic transmission with a torque converter. The refreshed 2025 Taos drops the dual-clutch transmission entirely, and all models now sport the 8-speed automatic.

“It was a test in the Taos. When you have a hatchback and you need an SUV, you are moving out of your GTI. It was a question whether mass-market adopters moving from a smaller vehicle like a GTI would find that nice, and we listened to customer feedback,” VW product manager Melinda Godec told MA.

Godec said the Taos is a conquest vehicle that grabs market share and buyers from competitors. Those competitor cars don’t have dual-clutch automatic transmissions, and the DSG didn’t meet their driving expectations. The issue stemmed from smoothness of shifts and transmission engagement off the line. With the DSG, there’s a lag as the clutches engage when moving forward from a stop.

“We need to meet them (the customer) where they are and not expect changed behavior,” Godec said.

The last vehicles to carry on with VW’s DSG are the Jetta GLI sport sedan and the Golf GTI and Golf R hot hatches.

Godec said that Volkswagen is seeing sales volume increase because of U.S.-specific build configurations for consumer preferences.

Volkswagen introduced the DSG in the 2003 Mk IV Golf R32 hot hatch, but the transmission didn’t come to the U.S. until 2007 with the Mk V R32.