Volkswagen Golf moves to Mexico, as German giant sheds 35,000 jobs

As part of this restructuring, the ID.3 and Cupra Born models will move to Wolfsburg, while the Golf hatch and estate make the journey overseas to VW’s Puebla, Mexico plant. Wolfsburg’s future will further be secured at the end of the decade with the introduction of the electric Golf and another model based on the future SSP electric car architecture, the company says.

In a statement issued on 23 December, VW said: “At company level, the company and employee representatives have agreed to realign the production capacities of the German Volkswagen plants with new structures and technologies to ensure competitiveness. To this end, production capacity in Germany will be reduced by approximately 734,000 units. The company is thereby responding to the decreasing automotive market in Europe and the increasingly fierce competition, while at the same time creating the fundamental requirements for continued commercially viable production at its home base in Germany.”

Thomas Schäfer, who is CEO of the Volkswagen Passenger Cars brand, says the agreement addresses three priorities the firm set out to ensure the future viability of VW: “Reduce overcapacity in Germany, reduce labour costs and achieve competitive development costs. With the agreed package of measures, we have thus created the basis for making Volkswagen the technologically leading volume manufacturer by 2030 – with a clear plan, strong products and a clear commitment to Germany as a business location.”

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