2023 Volkswagen Taos AWD First Test: Trouble for the Tiguan’s Tiny Bro

Almost no sooner than Volkswagen launched its Taos subcompact SUV that its all-wheel-drive powertrain was slapped with a recall due to a faulty control unit, which forced the automaker to withhold the AWD model for a time as it got the front-drive versions on the road. With that issue now resolved, we've finally gained access to a 2023 Volkswagen Taos AWD in order to evaluate it both at the track and on our daily routine.

Given the Taos was built to straddle the subcompact and compact SUV segments, Volkswagen has positioned it as a potential alternative to vehicles on either side of that size spectrum. But as these categories encompass some 30 vehicles and counting, automakers need to bring their A-games to rise to the top of our MotorTrend Ultimate Vehicle Rankings—and with the Taos placed solidly mid-pack, we can't say VW has done so.

During our earlier experiences with the Taos FWD, we found it to be an SUV with solid driving manners, impressive fuel economy, and copious interior space, but it fell short on the value front. The high-end examples we sampled simply didn't come with the features or performance worthy of their lofty price tags. Does Volkswagen's 4Motion AWD system bring something, anything, to make the outlay more justifiable? Nope. It actually does the opposite.

Every Taos is equipped with VW's 1.5-liter turbocharged I-4 engine making a modest 158 hp and 184 lb-ft of torque. However, mechanicals specific to the FWD and AWD variants yield differences that alter the experiences of each. Most notably, the FWD model rides on a twist-beam rear suspension and utilizes an eight-speed conventional automatic transmission, as opposed to the Taos AWD's independently suspended aft axle and seven-speed dual-clutch automatic.

Our testing shows the Taos AWD holds performance advantages over its two-wheel-drive twin as a result, but they're hardly significant enough to forgive its uncouth behavior on the road.

Dual-clutch transmissions are favored in performance-oriented vehicles like the Chevrolet Corvette and Volkswagen's own GTI for their near-instantaneous shifts and clutch-dump launchability—a feature we were surprised to find in the Taos. Launch control is activated by defeating stability control, selecting the Sport drive mode and S transmission programming, then mashing the brake and gas. A checkered flag appears in the gauge cluster as revs hold at 1,900 rpm. Release the brake, the Taos jumps forward, and 60 mph arrives 7.4 seconds later. Our test team noted this method improves the 0‒60-mph time by more than a second, but it's still only a blink quicker than the Taos FWD's 7.6-second result. That 0.2-second advantage holds through the quarter mile, which arrives in 15.7 seconds at 87.4 mph.

In the figure-eight handling test, the Taos AWD's fully independent suspension contributed to a lap of 27.2 seconds at 0.62 g average, more than a second ahead of the FWD model—a considerable margin. Outright grip also improved with AWD, to 0.85 g average on the skidpad compared to 0.82 g average with FWD.

Stopping distance from 60 mph also favored the Taos AWD, which needed 123 feet compared to the FWD model's 127 feet. Tires are a likely factor in these disparate results. The AWD version rolled on Pirelli Scorpion Zero All Season 225/45R19 92H rubber, wider and potentially stickier than the FWD Taos' Bridgestone Turanza LS100 (M+S) 215/50R18 92H shoes.

Regardless, these results are acceptable if unremarkable for a small SUV, and they aren't compelling enough reasons to choose the Taos AWD over competing offerings. In fact, despite the numbers advantages, out on the road we found the FWD version of the Taos better to drive than its AWD equivalent.

Volkswagen has used dual-clutch transmissions (Direct Shift Gearbox or DSG in brand parlance) in passenger vehicles longer than nearly any other automaker, and they typically work well. Sadly, that's not the case with the Taos AWD—its version of the DSG is more or less constantly fumbling.

Although we experienced none of the troubling delayed departures in this Taos test vehicle as we did with early-build examples, the transmission's lack of refinement remains problematic. Clutch take-up away from stops is abrupt and inconsistent, smooth in one instance and lurchy the next. Upshifts are quick under light throttle application, but each drops the little turbocharged engine out of its powerband, leading to a nonlinear acceleration feel. Bizarrely, shifts seem to slow at full throttle, with brief pauses in power as the gears change—not unlike the old-school automated manual transmissions that dual-clutch units have come to replace.

Though the Taos AWD's stopping distance isn't particularly noteworthy, its brake pedal is reactive and progressive in a reassuring way. But the transmission's downshifts interfere with the vehicle's deceleration. Each one pops the engine back into its powerband as the RPMs rise, shoving the Taos forward slightly with an undue spurt of power. Feeling the powertrain working against the brakes is disconcerting.

The ride insulation we recall from Taos FWD models seems diminished by the AWD version's independent suspension, which feels more firm and communicative over road imperfections. It provides good body control and effectively prevents the Taos from becoming unsettled, as evidenced by its improved figure-eight result. Even so, the Taos AWD isn't particularly tossable.

That's largely due to its steering, which has light effort, a slow ratio, and an enormous on-center numb spot—it's almost comical how much the wheel can be wiggled before there's a reaction from the front tires. On the plus side, at full steering lock the Taos' turning circle is exceptionally tight.

As with the Taos models we've assessed previously, this AWD example was built in range-topping SEL trim, which includes features such as heated and ventilated front seats, a digital gauge display, huge panoramic sunroof, and an uninspiring Beats audio system. It also carries a price tag of $35,830—thousands more than the equivalent Toyota Corolla Cross, Honda HR-V, Kia Seltos, and Subaru Crosstrek. For that money, the Taos also overlaps with SUVs a size up, including the Nissan Rogue, Honda CR-V Hybrid, Kia Sportage, and even the near-luxury Toyota Venza.

Sure, the 2023 Taos AWD doesn't have to cost so much; the entry-level S trim goes for less than $28,000. But every model is stuck with the same bungling dual-clutch transmission that so affects the everyday driving experience. If it had a notable performance advantage over its FWD equivalent or main rivals, it would be an entirely different story. But it doesn't. It's worth mentioning that the Taos AWD's test results are equaled or beaten by the redesigned 2023 Toyota Prius, which is priced in a similar bracket, returns significantly better fuel economy, and is more enjoyable to drive.

The ultimate Taos takeaway is this: Volkswagen devotees who want one should opt for the more refined FWD model, while those who aren't set on a brand and need a small SUV with AWD ultimately have better options from which to choose.