Good for Brazil: The VW Golf will be produced in Mexico again

Seeking lower costs, Volkswagen Golf has confirmed production in Mexico starting in 2027. The measure could benefit the model in Brazil

The Volkswagen Golf is ready for Mexico. The German automaker confirmed this week that the model will be produced again in Puebla from 2027, in eighth-generation hatchback and station wagon versions. The news opens up the possibility of more versions of the Golf arriving in Brazil, or even the GTI version at lower prices in the country.

The hypothesis had already been put forward by the German press, and was confirmed by the car manufacturer in an official statement released in recent days. In it, Volkswagen explains that it has reached an agreement with the ID.Metal union, which represents metalworkers in Germany. The brand will not close factories in its home country, but will have to reduce its workforce through retirements and other voluntary measures.

By moving the current Golf production line from Wolfsburg (Germany) to Puebla, Volkswagen hopes to reduce the model’s per-unit production costs, as local labor is cheaper, as is the energy used by the factories. This would also increase the profit margin per unit sold.

The Puebla factory already produces the Tiguan and Jetta models and has produced other generations of Golf. Another advantage is the fact that Mexico has trade agreements with the European Union, which would allow the Golf to be exported without paying import taxes. The same will happen with Brazil, exempting the model from a 35% increase on the final price for cars coming from outside Mercosur or from the land of tequila.

Since the brand intends to keep the eighth generation of the model online until at least 2035, changing countries would also be feasible from a marketing point of view. This movement would be similar to that of the Polo, which stopped being produced in Spain and began to be imported from South Africa to Europe.

The Wolfsburg factory, however, will not remain still. A new electric generation of the Golf will hit the market in 2029 and will be produced there. The new electric Volkswagen Golf will coexist with the current model on the market for a few years. Before that, however, the factory will start producing the electric Volkswagen ID.3 and the Cupra Born, focusing on two products, rather than four as currently.

The brand’s other factories in Germany will focus more on SUVs and electric models, which have a higher profit margin. The brand’s glass factory in Dresden will have its production line completed in 2025, but is expected to receive more business soon.

Launched in 2019, the eighth-generation Golf is currently only produced in Germany (for the local market and exports) and China (for the local market only). Renewed earlier this year in Europe, the Volkswagen Golf was one of the German brand’s stars at the Rock in Rio festival. On that occasion, the brand confirmed the launch of the GTI sports version in Brazil starting from 2025. The model should arrive after the new VW Terra.

Along with the new look, the model became more powerful, thanks to the 2.0 TSI engine with 265 HP and 370 Nm. In the latest restyling, it got new LED headlights and a thinner grille, as well as new bumpers, wheels and rear lights. Inside, the main innovation is the new 14.9” multimedia center with integration with GPT Chat.

It is always supplied with front-wheel drive and a 7-speed dual-clutch DSG automated gearbox. Since the new Volkswagen Golf GTI will come imported from Germany for the first time, the price is expected to be above R$320,000. With production in Mexico, it would be possible to offer it at prices closer to the Jetta GLI, around R$270,000.

Source: Terra

Rose

Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.