The current Golf Mk 8 with combustion engine will be sold until 2035, while the new Golf ID will arrive in 2028 on a new platform. This model will replace the Golf with combustion engine that is currently produced in Wolfsburg, and the latest information says that the Wolfsburg-based company is considering moving the production of this model to Mexico.
There is no confirmation from Volkswagen for now, and most of the talk is about Volkswagen’s largest plant in Mexico (Puebla) where one of the most famous models of the German automotive industry, the VW Beetle, was produced.
The European market has become more selective, and buyers are increasingly opting for SUVs, while once popular models like the Golf are no longer the first option. This creates additional pressure on the already difficult financial situation of European manufacturers, and moving production outside of European soil seems like a better option.
This also creates an additional problem that VW will have if the US imposes additional tariffs of 20%, which the new US president has promised.
After China proved itself as a leader in EV production, another Asian country is becoming a center for carbon-neutral vehicle manufacturers. According to the latest information, India could be one of the developing countries that wants to be a leading player in the production of electric cars.
The country has devised a strategy for the development and production of electric cars, although it initially focused specifically on Tesla, which it invited to invest in the construction of a gigafactory, but the American manufacturer has focused on Mexico. However, the announcement of the new President of the United States, Donald Trump, that he will introduce additional tariffs on vehicles imported from Mexico gives India an opportunity to renew negotiations with Tesla. The American manufacturer has already suspended the construction of a factory in Mexico.
The suspension of Tesla Model 2 production in Mexico was the main motive for Musk to go to India, but Prime Minister Narendra Modi canceled the meeting. The Indian government intends to launch its electric car production plan in March 2025, which Tesla and other major manufacturers see as a new opportunity. The plan is to expand aid to existing manufacturers rather than restricting benefits to new plant construction. India is ready to help any manufacturer that invests at least $500 million in electric vehicle production with 50 percent of components sourced locally. The government is also offering a 15 percent import tax cut for up to 8,000 electric cars a year.
Toyota and Hyundai have already shown interest, although it is not known whether they would use existing plants or build new ones. Hyundai already knows that the €500 million spent on research and development will not be included in the total investment, so the Korean company is waiting for the final guidelines for its electric car plan in India.
Volkswagen, which already has plants in India, wants to know if it could spend 75 percent of the total investment in the first three years, rather than the entire $500 million at once. Also, if VW decided to use its factories in Pune, they would have to install new lines separate from those for the production of combustion engine cars.
Volkswagen has been in trouble for a long time, and it seems that the way out of the crisis is still far away. Therefore, the company has decided to change its current course and announce better and more visually attractive cars with which it will try to attract new customers.
In recent months, Volkswagen has been forced to cut some jobs, the reason being the reduced demand for their cars, which have become too expensive for customers. In a statement to the British media, Kai Grünitz announced major changes that will start with the next generation of electric models ID.3 and ID.4, which will look different, more attractive and offer much higher quality materials in the cabin.
Speaking about the ID.3 and ID.4 models, Grünitz said that the new generations will have much better batteries and overall performance. It was also previously confirmed that the ninth-generation Golf, which could be a replacement for the ID.3, will be all-electric. The current eighth generation will be offered only with combustion engines until 2035.
He also announced the return of classic control switches that will replace the current and rather impractical control solutions via submenus on, according to many, oversized displays.
