Volkswagen has suspended development work on its electric ID Golf as mounting financial pressure forces the German car maker to cut spending on future models.
The decision affects one of Volkswagen's most important forthcoming electric cars, which is planned to enter production at its Wolfsburg headquarters in the early 2030s.
“We simply cannot afford this work at present,” Volkswagen brand boss Thomas Schäfer said in an internal company interview obtained by German broadcaster Norddeutscher Rundfunk (NDR).
Schäfer confirmed that the suspension in development had been agreed by Volkswagen's board but stressed that the electric Golf had not been cancelled.
“We're pausing it, not cancelling it,” he said.
In an official statement, Volkswagen finance boss David Powels said: “The market environment remains extremely challenging – and special items are weighing on our result. This makes it all the more important for us to systematically continue on our chosen course and sharpen our priorities further.
"We are improving our cost base and optimising working capital – while maintaining a high level of investment discipline.
"One specific measure is therefore to temporarily pause development work on the future ID.Golf at the Volkswagen brand until we can securely accommodate the necessary investments."
The decision raises fresh questions about the timing of the ID Golf, which had already been delayed by changes to Volkswagen's new 800-volt Scalable Systems Platform (SSP) and associated software development.
Originally expected in 2028 or 2029, the electric hatchback is now planned for introduction at the beginning of the next decade.
Volkswagen's works council says the latest interruption to the ID Golf need not delay its introduction, arguing that lost development time could be recovered.
The ID Golf is planned to follow an electric T-Roc onto the SSP platform, which will underpin a new generation of Volkswagen Group models.
As previously reported by Autocar,it will combine familiar design elements from earlier generations with new software developed through Volkswagen's joint venture with US electric car maker Rivian. GTI and R performance versions are also envisaged, while production of the existing petrol-powered Golf is scheduled to move from Volkswagen's Wolfsburg factory in Germany to its Puebla plant in Mexico.
The suspension comes amid worsening financial results.
The Volkswagen Group reported a €5.82 billion loss in the third quarter of 2026, while the Volkswagen passenger car brand recorded a €182 million loss, its first quarterly deficit since 2020.
The Group's latest financial statement reveals worldwide deliveries across its various brands fell by 9.0 per cent to 6.01 million in the first nine months of 2026, with deliveries in China down 30.3 per cent to 1.38 million.
Global electric car deliveries for the Volkswagen Group declined 5.4 per cent to 678,702, while those in China fell 42.5 per cent to just 48,938. Operating profit fell from €5.4 billion to €71 million over the same period.
