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Volkswagen, Golf flies to Mexico: possible shift of production from Wolfsburg to Puebla

Volkswagen is considering moving Golf production from Wolfsburg to Puebla, Mexico. A strategic choice that aims to reduce costs and get closer to American markets, but there is the unknown of the duties announced by Trump. The company continues its attempt to recover from the crisis that has hit it, with strikes and the risk of plant closures

Volkswagen, Golf flies to Mexico: possible shift of production from Wolfsburg to Puebla

Volkswagen is evaluating the possibility of moving Golf production, iconic car from the German manufacturer, from Wolfsburg to Puebla, in Mexico. The news, reported by the German newspaper Reuters, would represent a big change for the Wolfsburg giant, historically tied to the production of the model in its main plant. Puebla, which already hosts the largest Volkswagen plant in Mexico, has been the heart of the production of the for almost 40 years legendary Beetle.

La final decision has not yet been made and there are still no official comments from either the company or the works council. The plan represents one of the hypotheses discussed by management as part of a broader recovery strategy, which also includes extreme scenarios such as Closure of three factories in Germany and a 10% cut in employee salaries, measures that have already provoked large strikes.

Volkswagen in deep crisis between strikes and rising costs

Volkswagen is located at dealing with a complex crisis, aggravated by the pressure of energy costs and structural difficulties. The recent impasse with IG Metall union over new collective agreement has already led to strikes and internal unrest. The supervisory board has Drafting of new industrial plan postponed, initially scheduled for November, precisely because of the ongoing negotiations.

The German car manufacturer, already tested by global competition, must also deal with economic instability and volatile energy prices. So much so that even the Confederation of German Industrialists (BDI) has asked the government to intervene with a robust investment plan to support the sector.

Golf in Mexico: A Strategic Choice

Puebla represents a strategic choice for Volkswagen. Not only the plant it is already equipped to handle large production volumes, but the move would allow the group to reduce operating costs and approach key markets such as the Americas. The move to Mexico would also have a symbolic impact on the Group, as the Golf has been synonymous with German technology and quality for decades.

Instead, Wolfsburg would receive the Tayron SUV, set to replace the Tiguan Allspace, the extended seven-seater version of Volkswagen's midsize SUV. Already sold in China, the Tayron will be available in Europe in early 2025, with five- or seven-seater configurations and a wide range of engines.

Volkswagen's decision to move Golf production to Mexico appears to be a bold and courageous one, especially in light of the recent announcements by President-elect Donald Trump.imposition of duties of 25% on all products imported from Mexico and Canada could, in fact, penalize exports from the plant of Puebla to the United States, but it would still represent a long-term investment to strengthen the group's presence in American markets.

Volkswagen Golf: an icon between past and future

The Volkswagen Golf, introduced in 1974, It is one of the most recognizable symbols of world motor racing. Designed by the Italian Giorgetto Giugiaro, the first generation represented a paradigm shift, combining practicality and essential design. The global success has been overwhelming: with over 37 million units sold, the Golf has reached its eighth generation, maintaining a relevant position in the market.

Despite the current dominance of SUVs and crossovers, the car continues to stand out. In October 2024, it was the sixth best-selling car in Europe, with 16.455 units registered (+34% compared to the previous year). The ninth generation, fully electric, is scheduled for 2026, marking a turning point in the history of the model.

Despite the rumours, today the Volkswagen stock is slightly up, reaching 86,36 euros per share, with an increase of 0,32 euros (+ 0,37 %).

Updated at 14,32pm

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