Volkswagen is set to relocate the production of its iconic Golf model to Mexico in 2027, a decision driven by the significant decline in demand for gas-powered vehicles.
Sales figures illustrate this stark change; production of the Golf topped over one million units in 2025 but plummeted to just 300,000 last year. For 2023, the company anticipates producing around 250,000 Golf models.
As part of this transition, Volkswagen is undergoing a major restructuring of its Wolfsburg plant, which has long been the heart of Golf production.
Major Job Cuts Loom at Volkswagen as Company Shifts Focus to Electrification
Notably, the automaker is considering implementing a temporary four-day work week at the plant starting in 2027, as shared by Volkswagen’s works council chairperson, Daniela Cavallo. She emphasized the “unstoppable” trend of the shifting automotive landscape towards electric vehicles (EVs).
The upcoming electric version of the Golf, dubbed the ID Golf, is expected to debut in 2028, alongside an electric successor to the T-Roc SUV.
This new model will be constructed on Volkswagen’s latest SSP platform, which is anticipated to enhance charging speeds and overall efficiency. It will also be the company’s second vehicle to employ Rivian’s electrical architecture, following the ID.EVERY1.
In a broader context, Volkswagen is bracing for a significant workforce reduction, planning to cut approximately 35,000 jobs in Germany by the end of the decade. More than 20,000 employees have already chosen to end their contracts early, highlighting the substantial shifts occurring within the organization.
The transition signals Volkswagen’s commitment to electrification while grappling with the implications of decreased consumer interest in traditional combustion engines. As the automotive industry increasingly pivots towards sustainability, this move marks a crucial chapter in Volkswagen’s evolution.