AUTONEWS

VW Golf sales plummet

The Volkswagen Golf was once the Wolfsburg giant's top seller.The first Golf rolled off the assembly line in 1974, and more than 37 million have been produced since then. It is by far the most popular car in the company's history, significantly surpassing the Beetle (21.5 million) and Polo (20 million). However, judging by the current results, the Golf's market peak is far behind us.

Reuters has obtained access to an internal document and reports that in 2015, more than a million Golfs (hatchback and station wagon) were produced globally, while last year only a little over 300,000 were produced. A further decline is expected for 2025 - production of only 250,000 vehicles. In just ten years, production has decreased by as much as 75%. Works council president Daniela Cavallo told that the situation will only get worse: "The trend is an unstoppable decline. The Golf has to go to Mexico."

As Index.hr points out, there are several factors that doomed the Golf. Early software problems with the eighth-generation model likely affected demand. Information about the decline in interior quality compared to its excellent predecessor, the seventh-generation model, quickly arrived. The removal of most physical controls did not help either.

Customers also did not like the sliding touch elements below the screen, and the capacitive buttons on the more expensive versions before the redesign may have further turned some buyers off.

But we should not forget that we live in the era of SUVs and crossovers. The T-Roc is actually a crossover version of the Golf, and it is almost as popular as the hatchback version in Europe. According to Dataforce, 216,549 Golfs were sold in Europe last year - only 13,000 more than the T-Roc. Let’s also mention the T-Roc Cabriolet, which is doing quite well in the open-top market.

Shortened workweek?...Volkswagen plans to move production of the gasoline Golf from Wolfsburg to Pueblo, Mexico, starting in 2027. When that happens, Cavallo doesn’t rule out the possibility of introducing a four-day workweek at the German plant, which currently builds the Tiguan and the now-defunct Touran.

The Golf is due to return to Wolfsburg with its ninth generation – a fully electric model on a separate platform – by the end of the decade. The electric T-Roc will also be built there.

Meanwhile, austerity is in full swing. VW plans to cut 35,000 jobs in Germany by the end of the decade. Reuters reports that more than 20,000 workers have already contractually agreed to leave over the next five years. By 2030, the company plans to reduce annual production in Germany by 700,000 vehicles, and a large part of that reduction will come precisely due to the relocation of Golf production to Mexico.

Volkswagen and union agree to cut 20,000 jobs...Europe's largest carmaker Volkswagen (VW) is continuing with its job cuts plans. "Around 20,000 departures from the company by 2030 have already been agreed," said human resources chief Gunnar Kilian. This already covers more than half of the 35,000 job cuts by 2030.

In December, the company and the union, after lengthy negotiations, agreed on a restructuring program for the main VW brand. Almost a quarter of the 130,000 jobs in Germany are to be eliminated by 2030.

Layoffs for business reasons are not counted, and the reductions will mainly take place through early retirement and severance pay. "The first measures of the 'Volkswagen Future' agreement are in place and we are on the right track," said Kilian.

“With measurable progress in the costs of the Wolfsburg plant and socially acceptable layoffs at just six locations in Germany, we are accelerating our transformation.” However, they have not yet reached their savings target, added CFO David Powells.

“We still have a lot of work ahead of us,” Powells said. The goal is to position VW as competitive and sustainable for the future by 2029.

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