Volkswagen suspends electric Golf development in Wolfsburg — TimesLIVE

Volkswagen has suspended development of the new fully electric Golf at its main plant in Wolfsburg, Germany. As TimesLIVE reports, citing Reuters, this was communicated to employees in an internal memo seen by the agency by Thomas Schäfer, CEO of the German automaker's volume brands.

Falling behind on costs

Schäfer said that the Wolfsburg facility is falling short of its cost targets. According to him, the shortfall amounts to €300 million. He noted that the decision was not easy given the importance of the Golf model for Volkswagen and Wolfsburg, but the company currently cannot afford to continue this work.

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Restructuring in Germany

The suspension of electric Golf development indicates a tightening cost-saving regime at the group's headquarters. At the same time, Volkswagen plants in Emden and Zwickau are making progress, according to the internal memo.

Emden and Zwickau are among four German facilities facing possible closure as part of an intensified restructuring. The company is carrying it out amid competition from Chinese manufacturers and falling demand in key markets. The Wolfsburg plant is not included in this list.