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Volkswagen Boss Tells Workers It 'Can't Afford' An Electric Version Of Its Most Important Car

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Volkswagen Boss Tells Workers It 'Can't Afford' An Electric Version Of Its Most Important Car

Volkswagen's decision to temporarily suspend development of the electric Golf is looking increasingly worrying. Just days after the automaker confirmed it was putting the ID. Golf project on hold because of mounting financial pressures, a new report sheds more light on the situation. And the explanation from the company's top brass is unusually blunt: “We simply can't afford this work right now.”

According to Reuters, CEO Thomas Schäfer delivered the message in an internal memo sent to employees. He acknowledged the Golf's importance to both the company and its hometown of Wolfsburg. Still, he admitted that the automaker doesn't currently have the financial breathing room to continue preliminary development work.

'I know what the Golf means for Volkswagen and for Wolfsburg. That's why this decision was really not an easy one for us," Schäfer wrote. "We simply can't afford this work right now.'

That's quite an admission for a company so closely tied to the Golf. The hatchback has been around since 1974 and has sold more than 37 million units across eight generations. Yet even VW's most important nameplate isn't exempt from the sweeping cost-cutting measures.

The internal memo also reveals that VW's main factory is struggling to meet its financial targets. The Wolfsburg plant is reportedly €300 million ($336 million) short of its cost-reduction goal, adding pressure on management to rein in spending.

The situation could be even worse, as Wolfsburg isn't among the four German factories of the VW Group potentially facing closure under the company's restructuring plan.


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