Volkswagen was previously expected to reveal a fully electric iteration of its Golf marque, the ID. Golf, before the end of this decade, but the arrival date of this important vehicle is now less certain, after a mention in a recent financial update for the Volkswagen Brand Group Core.
Development of the electric ID. Golf is on hold – for now
The pause is one of many cost-saving measures the company is now implementing as it faces a less positive financial situation this year. This comes despite rising BEV demand across many European territories, likely to be a key market for the ID. Golf once it eventually arrives, but Volkswagen does note that it can still earn a much higher profit margin on ever ICE car it sells compared to every EV.
David Powels, CFO of Volkswagen Brand and Brand Group Core, commented:
“The market environment remains extremely challenging – and special items are weighing on our result. This makes it all the more important for us to systematically continue on our chosen course and sharpen our priorities further. We are improving our cost base and optimizing working capital – while maintaining a high level of investment discipline. One specific measure is therefore to temporarily pause development work on the future ID.Golf at the Volkswagen brand until we can securely accommodate the necessary investments. At the Brand Group Core, we are making even greater use of the potential offered by our cross-brand governance. The new steering model is a key lever for making our cost base more competitive and thus achieving even greater efficiency.”
With many brands, particularly new entrants from China, pushing much harder with widespread plug-in lineups, it remains to be seen how the pause will affect Volkswagen’s wider EV transition. It could be argued that an electric Golf already exists in all but name, with the new refreshed ID.3 Neo serving as the brand’s capable electric hatchback. It’s clear that Volkswagen wants to eventually move away from the numerical ID. naming system towards its established nameplates though, particularly with the recently revealed ID. Tiguan taking over from the ID.4 and ID.5 models.
