Volkswagen pauses development of electric Golf

Volkswagen has halted development of its all-electric Golf after reporting its largest quarterly loss since the Dieselgate scandal in 2015. Chief financial officer and COO Arno Antlitz warned that the group cannot afford to lose any time and must act quickly and decisively. The third-quarter operating loss swelled to €5.9 billion, driven by a write-down of the Porsche stake, weak sales in China and lower margins on electric vehicles.

Why the pause?

The pause comes from cost pressure at the Wolfsburg plant, which is about €300 million short of its cost-cutting targets. It follows the supervisory board's approval of the Future Plan 2030, which will cut the workforce by 100,000 and close several German plants. The electric Golf, built on the Scalable Systems Platform developed with Rivian, has been held back by software delays.

The works council says the freeze will not delay the launch, which is still expected in 2030. Production of the gas-powered Golf is set to move to Puebla, Mexico, in 2027. In the U.S., Volkswagen has also halted or paused production of the ID.4 and ID. Buzz.

The decision comes as the group faces deepening financial strain. It is cutting up to 100,000 jobs and could close up to four factories across Germany. Wolfsburg itself is not among the sites facing closure, but it must sharply trim its operations.

Thomas Schäfer, the brand CEO, said in an internal memo that the decision was not an easy one, given what the Golf means to Wolfsburg. He said the delay was because the SSP platform was taking longer than expected. The works council has promised to make up for lost time.