The electric Volkswagen Golf is facing a delay, but not for the usual reasons. According to a new report, the holdup stems from the company’s own cost-cutting measures—specifically, a lack of budget to retool the Wolfsburg factory. This setback pushes the EV launch back by nine months and also stalls plans to shift production of the gasoline-powered Golf to Mexico.
VW Delays Investment Plans
Under a major labor agreement aimed at preserving tens of thousands of German jobs, Volkswagen and its works council had planned to move Golf hatchback production from Wolfsburg to Mexico by 2027. In exchange, Volkswagen intended to retool the Wolfsburg plant to produce the electric Golf. However, Reuters reports that these plans are now delayed. The electric Golf, previously scheduled for a 2029 debut, could be pushed back even further.
According to the report, Volkswagen now plans to postpone the necessary spending to a later year. This marks yet another delay for the electric version of the Golf, the company’s once best-selling model.
The delay doesn’t just affect the Golf—it also pushes back the launch of the electric T-Roc crossover. That’s another significant setback for Volkswagen and its ambitions in the EV market.
The report notes that these delays give Volkswagen’s biggest potential rivals a chance to strengthen their position in the European EV market. Companies like BYD are already expanding across the continent and are ahead of Volkswagen in both range and pricing.
In 2024, Volkswagen announced a 15-month delay due to setbacks in its Cariad software division, which wasn’t ready in time. That pushed the electric Golf’s launch to 2029 and also delayed another EV, the T-Sport SUV, to 2031.
Could Rivian Tech Find Its Way Into the Golf?
The delay could give Volkswagen additional time to integrate technology from its partnership with EV startup Rivian. Announced last year, the joint venture aims to share software and other innovations—potentially helping the electric Golf stay competitive against Chinese rivals.
Our first major glimpse of the new electric Golf came in 2023 with the ID. GTI, Volkswagen electric take on the iconic GTI. The company said it would be priced around $33,000 as an electric hot hatch. At the time, the car was expected to be revealed in 2026, ahead of a 2027 launch.
The GTI is now expected to arrive in the U.S. in 2030, and the latest delays could push that timeline even further. Volkswagen CEO Thomas Schäfer described the car as “mind-blowing” to drive, suggesting it will retain the spirit of a true GTI. In the meantime, the current lineup—including the gas-powered Mk VIII Golf, GTI, and R—will continue in production. Volkswagen is expected to keep building these models at least through 2028, with the possibility of extending production if the EVs aren’t ready.
