2027 Volkswagen Atlas Gains 2 MPG, Moves to Middle of Three-Row Class

NEW YORK, NEW YORK - MARCH 31: A view of the 2027 Volkswagen Atlas at the reveal on March 31, 2026 in New York City. (Photo by Dimitrios Kambouris/Getty Images for Volkswagen of America)

The redesigned 2027 Volkswagen Atlas delivers EPA-estimated fuel economy of 22/29/25 mpg city/highway/combined in front-wheel-drive form, a 2 mpg improvement across the board compared to the 2026 model. All-wheel-drive versions are rated at 20/27/23 mpg.

The 2 mpg gain moves the Atlas from the bottom of the midsize three-row SUV class to the middle tier. The segment is crowded: the Atlas competes with the Chevrolet Traverse, Ford Explorer, GMC Acadia, Honda Pilot, Hyundai Palisade, Jeep Grand Cherokee L, Kia Telluride, Mazda CX-90, Subaru Ascent, and Toyota Grand Highlander. None of those are low-volume players, which means fuel economy matters more than it did when the Atlas launched in 2017.

The context for the improvement: the Atlas and two-row Atlas Sport accounted for 30 percent of Volkswagen’s sales in 2025, making the model the brand’s highest-volume nameplate by a wide margin. A vehicle carrying that much of the sales load cannot afford to sit at the bottom of its class on fuel economy, particularly as buyers cross-shop models that have tightened their combined ratings in recent years.

The gain is meaningful in practice. The front-wheel-drive Atlas now matches or beats several segment competitors on the combined cycle, and the all-wheel-drive version closes the gap with models that previously held a clear advantage. The 29 mpg highway figure for the front-drive configuration is competitive with what buyers expect from a three-row SUV in 2027, though it does not lead the class.

Volkswagen builds the Atlas at its Chattanooga, Tennessee factory, the same facility that has produced the model since its 2017 introduction. The redesign for 2027 includes the powertrain revisions that enabled the fuel economy improvement, though Volkswagen has not detailed what changed mechanically beyond the EPA ratings themselves.

The Atlas has been a volume anchor for Volkswagen in the U.S. market, a role that became more pronounced as the brand discontinued sedans and wagons from its American lineup. The fuel economy gain suggests Volkswagen understood that the previous ratings were leaving sales on the table, and that 2 mpg was the minimum increment required to keep the Atlas competitive in a segment where buyers are increasingly weighing efficiency alongside space and price.

The 2027 Atlas will go on sale later this year. Volkswagen has not announced pricing for the redesigned model.

Source: Volkswagen. Images courtesy of Volkswagen.