The Volkswagen Golf will be produced in Mexico, the ID.Golf in Germany

The agreement between Volkswagen and the German metalworkers' union IG Metall is signed, with the danger of redundancies and factory closures in Germany averted. However, there is no shortage of news and one of the topics is the future of the Volkswagen Golf, the best-selling model in the German manufacturer's history. After a 50-years, it is preparing to leave the Wolfsburg factory and move to Mexico.

It is a landmark move that will start in 2027 making way for the ID.3 and Cupra Born as well as models that will be based on the new SSP platform, which are dedicated to the electric Volkswagen of the future, such as the ID.Golf, the battery-powered version of the German compact car, scheduled for 2029.

The reasons for the choice

The press releases from Volkswagen and IG Metall do not go into detail about the reasons behind the decision to transfer production of the Golf (both 5-door and estate) to Mexico, although it is easy to guess - cost of labour and energy.

Volkswagen Golf

Photo by: Volkswagen

The average salary in Mexico is in fact 350,000 pesos per year, equivalent to about €17,000 (source: Joinhorizons.com). In Germany, on the other hand, the average salary of a factory worker is between €1,550 and €2,150 depending on the specialisation (source: Eurostat), for an annual total of between €20,150 and €27,950 (calculating thirteen monthly payments). Even with regard to energy, the price difference is substantial, for a considerable saving that will allow Volkswagen to replenish its coffers with all due respect for the 'made in Germany' flagship of the Golf. 

The move to the Central American country should not present any problems from an export point of view, as Mexico has been a trading partner of the European Union for years and there are no duties between the two markets. There would therefore only be transport costs between Central America and the Old Continent.

Volkswagen Golf, third and eighth generations together

Photo by: Motor1.com

Out with the old, in with the new 

The other big news concerns the new Volkswagen Golf, or rather ID.Golf, an acronym that incontrovertibly indicates the 100% electric nature of the next generation of the German compact car. Volkswagen is not talking about it, but IG.Metall in its press release mentions 2029 as the year production will begin, this time in Wolfsburg. The headquarters will therefore be without a Golf for two years, just long enough to modernise to produce models based on SSP, VW's new electric platform announced in 2021 and planned for 2026, only to have its debut delayed to 2028 due to problems in development.

The SSP will in fact be a mechanotronic platform, merging hardware and software at a deeper level than ever before. In Volkswagen's plans, it will have to replace the MEB and PPE (the currently used electric platforms) due to its ability to adapt to numerous models. Its main home will be, as mentioned, the Wolfsburg plant and the Golf its king.

Volkswagen Golf GTI, sketches of the first and eighth generation

We are still more than four years away from its arrival and it is naturally still too early to know what it will look like. Although in an interview with Motor1 a few months ago Andreas Mindt, head of design at Volkswagen,

"I think what we will see is a very pure design, very simple and clean. We want to put in all the essence and the best details of the Golf's history. A Golf will always be a Golf, I assure you. And if we removed all the badges, if we left nothing on the car, you would recognise it as such.

Read also:

Volkswagen will not lay off or close factories - agreement reached

No deal: Audi factory in Brussels closes in February

VW Tayron: Family SUV goes into production in Wolfsburg

Volkswagen accelerates electric car, joint venture with Rivian