Does the Volkswagen Atlas have transmission issues that customers should be aware of? Yes, and here is one customer's amazing story. She purchased a 2025 Atlas SUV, and now, after two days and only 29 miles, the transmission needs to be replaced.
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Rachael Holm has a story that Volkswagen Atlas buyers and Atlas customers need to know about.
Imagine the shock of purchasing a new 2025 Volkswagen Atlas SUV, believing you've done your research, only to face an unexpected issue. After just two days and 29 miles, the car won't accelerate and shifts into neutral without any input.
You have the brand new vehicle towed into the Volkswagen dealer, and they tell you it needs a new transmission. You can imagine how shocked and disappointed you would be.
That's what happened to Rachael Holm as she was driving her new Volkswagen Atlas, a vehicle she thought was reliable and a good family SUV, with her two small children in the car. She was thankful that it didn't happen while she was on a busy road, but the potential danger was a shocking reality.
Here is what Rachael says on the Volkswagen Atlas Owner's Facebook page.
"We purchased a brand new 2025 VW Atlas SEL Premium R-Line last Friday. It had 12 miles on it. Just two days later (Sunday), while driving, it wouldn't accelerate and went into neutral. We couldn't move at all. Luckily, I wasn't on a major road. We were at 29 miles."
"We had to be towed to the dealer because it couldn't be driven."
"So, Sunday, the Volkswagen service department was closed, and Monday was Memorial Day. It has now been a week, and I've just been informed that the issue is with the transmission. Now, they're saying our brand new Atlas transmission needs to be completely replaced."
"Has anyone else dealt with something similar?" she asks other owners.
"Is this a situation where you would attempt to go through with the repair or request a brand-new vehicle? Any tips or insight on how to handle this would be greatly appreciated."
Does the Volkswagen Atlas have transmission issues?
Volkswagen Atlas owners have reported that their vehicles have experienced transmission issues, including difficulties shifting out of park, error messages, and even complete transmission failure. Some owners have reported these issues with brand-new vehicles, even with very few miles.
Jill Shue, on the VW Atlas Facebook page, says, "I just had the same thing happen with my 2025 Atlas R Line. Volkswagen replaced the transmission with 100 miles on it. There are rumors online that a transmission recall is coming for the 2025 models."
A Reddit user, mKenL, says, "I have a 2024 Atlas, which went into service for vibration at highway speeds, approximately 1,600 miles on it."
"The dealer gave me a 2025 Atlas loaner and was driving on the highway when the dash lit up like a Christmas tree; then the car went into Neutral ( was going around 70 miles per hour)."
"I called roadside assistance as the car wouldn't shift into gear, only park and neutral. After sitting on the side of the highway for 45 minutes, the tow truck came, and the car went into gear when he checked. He advised me to try driving, and he would follow me for a few miles. Within half a mile, it went back into neutral and wouldn't go back into drive."
"Not the best two weeks' experience so far with two Atlas models having different issues and requiring dealer assistance. Hopefully, the next loaner has no issues."
Here's a more detailed look at the issues:
- Shifting Problems: Many owners have reported difficulties shifting out of park or other gears, which can cause the vehicle to become immobilized.
- Error Messages: Issues are often accompanied by error messages such as "gearbox malfunction" or "stability control error."
- Transmission Failure: Some owners have reported complete transmission failure, resulting in a loss of drive power.
Does Volkswagen Have an Atlas Recall?
A report from Kelley Blue Book states that Volkswagen has issued a recall for certain 2025 Atlas and Atlas Cross Sport SUVs due to transmission failures, explicitly noting that some transmissions were not properly sealed during production.
KBB says, "The company (Volkswagen) tells the National Highway Traffic Safety Administration (NHTSA) that a production defect left some transmissions improperly sealed. They can drain suddenly and seize up."
Auto Evolution says, "Volkswagen Group of America started investigating on November 20, 2024, after the issue was identified at the Chattanooga vehicle assembly plant in Tennessee. On the very same day, the supplier identified the affected stock, and Chattanooga workers quarantined suspect automatics that have yet to be used in vehicle production."
What Should Volkswagen Atlas Owners Do?
Take your Volkswagen Atlas to a Volkswagen dealer to have it inspected and repaired under warranty. However, if VW cannot resolve the issue due to its severity and frequency, some owners have considered filing lemon law claims.
Knight Law Group says, "If your Volkswagen Atlas problems have not been repaired within a reasonable number of attempts by your dealership or repair facility, your VW Atlas may meet the legal standard of a 'defective' vehicle. If your Volkswagen Atlas cannot be fixed, get a free consultation with a lemon law attorney to discuss your legal options."
VW Atlas owners can check the Volkswagen recalls and service campaign tool here to see if your vehicle is on the recall list.
Conclusion:
In summary, while a specific recall was issued for a limited number of 2025 Atlas models due to a transmission defect, it's prudent to be aware of the possibility of other transmission-related problems and to address any concerns promptly with a Volkswagen dealership.
Not all Volkswagen Atlas SUVs have defective transmissions, but some do. Customers like Rachael are understandably disappointed that a new vehicle with only 29 miles had to be towed to the dealer and now needs a new transmission.
Rachael says, "I'm honestly shocked. A brand-new vehicle should not need a new transmission this early. We traded in our old vehicle and are now back to driving it as our loaner."
It's Your Turn
Do you own a Volkswagen Atlas? Have you experienced any transmission issues with your SUV? If so, click the red Add New Comment link below and let us know.
Check out my 2025 Toyota RAV4 story: I Just Bought a 2025 Toyota RAV4 XLE, Put 1000 Miles On It, and I Already Want To Trade It In, This Car Is a Total Disappointment
I am Denis Flierl, a Senior Torque News Reporter since 2012. My 30+ year tenure in the automotive industry, initially in a consulting role with every major car brand and later as a freelance journalist test-driving new vehicles, has equipped me with a wealth of knowledge. I specialize in reporting the latest automotive news and providing expert analysis on Subaru, which you'll find here, ensuring that you, as a reader, are always well-informed and up-to-date. Follow me on my X SubaruReport, All Subaru, WRXSTI, @DenisFlierl, Facebook, and Instagram.
Photo credit: Denis Flierl
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