Crisis at the car manufacturer: VW is forced to make savings - development of the new E-Golf is suspended

Wolfsburg. Volkswagen is responding to the ongoing crisis with further cost-cutting measures at the main plant in Wolfsburg. The Volkswagen brand has temporarily suspended development work for the future fully electric Golf, the company announced. This measure applies “until we can safely make the necessary investments,” said brand CFO David Powels.

In the challenging market environment and with the burdened results, it is important to consistently continue on the chosen course and further sharpen priorities, said Powels. Just yesterday, VW announced that its consolidated profit after taxes for the months July to September was around minus 5.82 billion euros. This was justified by a Porsche depreciation worth billions, the weak Chinese business and costs for the conversion.

The works council in Wolfsburg emphasized that the break does not mean that the project will be canceled or that the start will be delayed. “Delay can be made up for,” said an intranet post available to the dpa. The temporary spending stop is another sign of the group's tense financial situation.