Volkswagen moves Golf production to Mexico, focuses on EVs in Germany
Volkswagen ends 50 years of Golf production in Wolfsburg by 2027, shifting to Mexico to cut costs. The German plant will build EVs like the ID.3 and a new electric Golf.
Volkswagen is bringing a fifty-year era to a close: production of the VW Golf is moving from Wolfsburg to Mexico. This decision, discussed since 2024, forms a key part of the company's cost-cutting program and the restructuring of its German plants. For the automaker, this isn't just about optimizing expenses but also represents a strategic pivot toward electric vehicles.
Why the Golf is Leaving Wolfsburg
Production of the first-generation Golf began at VW's main plant in 1974. Half a century later, the brand has announced that starting in 2027, the Golf will roll off assembly lines at the plant in Puebla, Mexico. The German production line will be halted as early as spring 2026. The company explains the move as necessary to balance global capacity and reduce manufacturing costs. Localizing production in Mexico allows the Golf to be built closer to North American markets and utilizes factories where production costs are lower.
How the Wolfsburg Plant Will Be Restructured
The capacity freed up from Golf and Golf Variant production will be redirected to expanding Volkswagen's electric vehicle lineup. Starting in 2027, the plant will begin manufacturing the ID.3 and Cupra Born, and the number of production lines will be reduced from four to two. Simultaneously, the company is preparing the site for a new-generation "electric Golf," which will be built on the SSP architecture—the key platform for future Volkswagen EVs. By 2030, around 4,000 employees will leave the plant, reflecting the broader plan to reduce technical capacity by 734,000 vehicles across German facilities.
The Financial Logic of the "Zukunft Volkswagen" Strategy
Relocating production is part of a major package of economic measures agreed upon by Volkswagen, IG Metall, and the Betriebsrat. The company aims to cut annual labor costs by €1.5 billion by 2030. Faced with competitive pressure, declining margins, and the need to invest tens of billions in electrification, Volkswagen is compelled to free up resources and shift production to more advantageous regions.