VW's New Atlas II SUV Fails to Impress Reviewers

The second-generation three-row Atlas arrives with a smaller engine and no hybrid options, leaving it behind competitors in the booming American SUV market.

Apr. 10, 2026 at 1:37pm

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An abstract, blurred image of a Volkswagen Atlas SUV in motion, conveying a sense of speed and modern engineering through sweeping streaks of color.The new Volkswagen Atlas SUV struggles to stand out in the highly competitive American three-row crossover market.NYC Today

Volkswagen's unveiling of its new second-generation Atlas SUV at the New York International Auto Show was met with a lukewarm response from reviewers. The updated model features a slightly redesigned exterior and upgraded interior tech, but critics found it lacking in key areas like engine power and the absence of hybrid or electric variants. With competitors like the Ford Explorer, Chevrolet Traverse, and Toyota Grand Highlander outselling the current Atlas, VW appears to have missed the mark on what American buyers want in the booming three-row SUV segment.

Why it matters

The three-row SUV market in the U.S. is highly competitive, with American families increasingly shifting away from minivans toward larger seven-seat utility vehicles. Automakers are vying for a share of these profitable sales, but VW's new Atlas II seems to fall short of meeting customer demands for power, efficiency, and the latest powertrain technologies.

The details

The 2027 Atlas II features a smaller 2.0-liter turbocharged four-cylinder engine, down from the previous 3.6-liter V6. While the new engine produces slightly more horsepower, reviewers found it "strained" and "buzzy" under heavy acceleration, lacking the smooth, premium feel of the outgoing V6. Volkswagen also did not include any hybrid or electric variants in the initial 2027 lineup, putting it behind competitors that already offer electrified options. The updated design and tech upgrades, like a larger infotainment screen and powered tailgate, were deemed underwhelming by critics who felt VW missed the mark on what American buyers want in a three-row SUV.

  • Volkswagen unveiled the new Atlas SUV at the 2026 New York International Auto Show.
  • The 2027 Atlas II is expected to go on sale later this year.

The players

Volkswagen

The German automaker that has repeatedly struggled to match its European sales success in the American market.

Ford Explorer

A top-selling three-row SUV in the U.S. market, outselling the current Volkswagen Atlas.

Chevrolet Traverse

Another popular three-row SUV competitor that outsold the current Volkswagen Atlas.

Toyota Grand Highlander

A new three-row SUV model that sold around twice as many units as the current Volkswagen Atlas in 2022.

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What’s next

Volkswagen is promising a hybrid version of the Atlas later in the model's lifecycle, potentially as late as 2029 when a new non-plug-in hybrid platform is expected to be shared with the Atlas Cross Sport and Tiguan models.

The takeaway

Volkswagen's struggle to capture the American market continues with the new Atlas II SUV, which fails to address key customer demands for power, efficiency, and the latest powertrain technologies in the highly competitive three-row SUV segment. The automaker's inability to read the pulse of U.S. buyers has plagued it for decades, and the Atlas II launch suggests VW still has work to do to meet the needs of American families.