There is no final decision on the fate of the VW Golf yet, but one of the most likely candidates for the role of the model's main manufacturer in the future, according to Handelsblatt, is the Mexican plant in the state of Puebla. This is Volkswagen's largest production facility in the country, where the legendary Beetle was previously produced for almost 40 years. However, VW has so far refrained from commenting, stressing that the decision has not yet been made and the company does not discuss rumours.
The reason for the possible transfer of production from Wolfsburg is economy. The Golf has lower margins than popular SUVs, and high labour costs in Germany make it difficult to maintain production. Moving to Mexico could significantly reduce costs, which is important for Volkswagen right now given the shift to electric cars and growing competition.
Context
The current internal combustion engine version of the Golf Mk8.5 will remain on sale for a long time to come - probably until 2035. Meanwhile, the new electric Golf ID. due in 2028 will get a new platform. This is what will replace the Golf with an internal combustion engine on the assembly line in Wolfsburg.
However, moving Golf production to Mexico could create problems with exports to the US due to the possible 20 per cent import duties that Donald Trump has promised to impose. Right now, only sporty versions of the Golf GTI and Golf R are offered in the US market, and sales of these models account for only 3 per cent of global Golf production, making it uneconomical to move production to the US. Volkswagen will therefore have to weigh all scenarios carefully to find a balance between economy and logistics.
Source: Handelsblatt
