Volkswagen (VW) has planned to relocate production of its iconic Golf hatchback to Mexico, marking a new chapter for the model in line with its Beetle predecessor. The move is part of the company’s broader effort to improve global competitiveness, a strategy that will result in significant changes to its operations in Germany.
The restructuring, which includes a joint agreement with unions, is set to reduce VW’s domestic manufacturing capacity. According to reports from The Telegraph, the measures are projected to save the company €15 billion annually in the medium term under the initiative named ‘Zukunft Volkswagen’ (Future Volkswagen).
Among the changes, vehicle production at VW’s ‘Transparent Factory’ in Dresden will come to an end. The facility, which has previously produced luxury models such as the Volkswagen Phaeton, Bentley Flying Spur, and, more recently, electric models like the Golf and ID.3, will cease operations as part of the overhaul.
Production of the ID.3 and Cupra Born electric models will shift to Wolfsburg, VW’s headquarters in Germany, ensuring the facility’s long-term viability. Wolfsburg is also set to gain additional significance at the end of the decade with the introduction of the electric Golf and another model built on VW’s upcoming SSP (Scalable Systems Platform) architecture.
Meanwhile, production of the Golf will transition to VW’s plant in Puebla, Mexico, a location previously associated with the Beetle. The move underscores the brand’s commitment to optimizing its global manufacturing footprint while navigating the evolving automotive landscape.
Volkswagen’s restructuring plan highlights the balancing act between enhancing global competitiveness and managing its workforce. The company anticipates a reduction of 35,000 jobs in Germany by 2030 as it adapts to industry demands and strengthens its position in the electric vehicle market.
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