VW pauses electric ID. Golf work: 'We simply cannot afford it'

The battery-powered successor to Europe's best-known hatchback has been put on hold. Volkswagen has paused development work on the electric ID. Golf, the car meant to replace the petrol Golf at the brand's Wolfsburg headquarters plant, because it needs to save money.

"We simply cannot afford this work at present," VW brand boss Thomas Schäfer said in an internal company interview obtained by German broadcaster NDR, as reported by Autocar. He added that the board had agreed the step, but that the project is not dead: "We're pausing it, not cancelling it."

Why VW hit pause

VW's finance chief David Powels said in an official statement that the market "remains extremely challenging" and that the company is cutting costs and sharpening priorities. "One specific measure is therefore to temporarily pause development work on the future ID. Golf," he said, "until we can securely accommodate the necessary investments."

According to heise autos and Reuters, the Wolfsburg plant is about €300 million short of its cost target this year. That is the plant's shortfall, not the cost of the Golf project.

The wider numbers are not pretty either. Autocar reports that Volkswagen Group's global electric car deliveries fell 5.4% to 678,702, with deliveries in China down 42.5% to 48,938.

What it means for the electric Golf

The ID. Golf had already slipped. Autocar says it was originally expected in 2028 or 2029 and is now planned for the beginning of the next decade. VW's works council argues that the pause need not delay the launch further, because lost time could be made up later. VW has not given a firm date or said how long the pause will last.

The car is due to use VW's new 800-volt Scalable Systems Platform (SSP), following an electric T-Roc, and to run software developed through Volkswagen's joint venture with Rivian. GTI and R performance versions are planned. Meanwhile, production of the current petrol Golf is set to move from Wolfsburg to Puebla in Mexico.

Small EVs carry on

The pause does not mean VW is stepping back from electric cars. Heise reports that VW has about 150,000 orders for the ID. Polo and its related small models, which sit below the Golf in size and price. We covered the plans for that family in our report on VW's electric urban cars and the cheaper ID. Every1.

Weighing up an EV, a hybrid or a plug-in right now? Our guide to hybrid vs plug-in hybrid vs EV compares running costs and charging needs, and how long it takes to charge an EV explains home and rapid charging times.