Volkswagen temporarily suspends development of the ID. Golf

Volkswagen has temporarily suspended the development of the ID. Golf. This was confirmed by the brand’s CFO, David Powels, during the presentation of the third-quarter results. The decision appears to be driven by the German automaker’s financial situation, as the profit margin on Volkswagen’s passenger vehicle sales dropped from 2.3% to 1.3% in the first nine months of the year.

Operating profit, meanwhile, fell from 1.480 billion euros to 813 million euros (the brand recorded a loss of 182 million euros in the third quarter). Additionally, the Wolfsburg plant responsible for producing the ID. Golf is expected to fall short of its cost-reduction targets for 2026 by around 300 million euros.

This contrasts with Emden and Zwickau, which are meeting their respective cost-cutting plans. Volkswagen CEO Thomas Schäfer says development of the ID. Golf will resume as soon as possible... once the necessary cost reductions are achieved. It is unclear whether this pause will affect other projects such as the ID. Roc, which is being developed in parallel.

The Volkswagen ID. Golf will be based on the SSP platform, a next-generation electric architecture designed to replace the current MEB and PPE platforms. Its development has faced several delays, and recent reports suggest that instead of integrating the electric/electronic architecture currently being developed with Rivian, it might use the same one already employed in some Volkswagen models in China, which was created in collaboration with XPeng.

The Volkswagen ID. Golf will be launched at the beginning of the next decade

The conventional Volkswagen Golf, currently produced in Wolfsburg, will begin manufacturing in Puebla, Mexico, starting in 2027. Its position in the German plant will be taken over by the CUPRA Born and Volkswagen ID.3 Neo, which are currently assembled in Zwickau. These models are expected to be replaced at the beginning of the next decade by the future electric Leon and the ID. Golf.

The works council states that this delay does not necessarily mean a postponement in the launch of the ID. Golf, as the lost time can be made up for. Volkswagen’s latest electric models (especially the ID. Polo) are achieving tremendous sales success in the European market, largely driven by rising fuel prices.

What’s the problem? The profit margins on electric cars are lower than those on conventional models. “The market environment remains extremely complex, with extraordinary factors affecting our results. That’s why it’s even more important that we continue systematically down the path we’ve chosen and further clarify our priorities,” says Powels.

"We are improving our cost structure and optimizing working capital, while maintaining a high level of discipline in investments. A specific measure is therefore to temporarily suspend the development of the future ID. Golf from the Volkswagen brand until we can secure the necessary investments. At Brand Group Core, we are further leveraging the potential offered by our inter-brand governance. The new management model is a key lever to make our cost structure more competitive and thus achieve greater efficiency."

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