Volkswagen's Arteon hatchback has been dropped from the U.S. market, one year earlier than planned.

VW last June said it planned to drop niche models like the Arteon in an attempt to improve efficiency of its operations and in turn boost profits.

The automaker said at the time the Arteon would be continued to be offered in the U.S. through the 2024 model year before exiting the market, but the hatchback was dropped from local sale at the end of 2023.

Production ceased at the car's plant in Emden, Germany, late last year. An Arteon Shooting Brake wagon offered overseas is still in production at a plant in Osnabrück, Germany, and will continue to be built until 2026, a VW spokesman told Motor1.

2021 Volkswagen Arteon R

2021 Volkswagen Arteon R

Filling in for the Arteon will be ID.7 electric hatch which starts sales in the U.S. later this year as a 2025 model. The ID.7 is built at the same Emden plant where the Arteon hatch was built. VW also builds the ID.4 electric crossover at the Emden plant.

The Arteon arrived in the U.S. as a 2019 model but failed to gain any real traction. Annual sales averaged less than 3,000 units.

The Arteon joins several other models that were discontinued after 2023. The list includes the Chrysler 300, Dodge Challenger and Charger siblings, the Kia Stinger, and the Nissan Maxima.

Outside the U.S., VW also plans to drop the T-Roc Cabriolet as part of its ongoing efficiency drive. The automaker will also reduce the number of variants within each model line.