Volkswagen Golf lineup to shrink to cut costs – report

Der neue Volkswagen Golf Alltrack

When the revised Volkswagen Golf makes its debut in November, the famed nameplate will be offered in fewer variants. The Mk7 Golf is currently offered in hatchback, estate, convertible, Alltrack and SV bodystyles; however this lineup is set to be streamlined to reduce cost and complexity, according to Autocar.

The move was hinted at through a recent decision to stop selling the convertible in the United Kingdom, one of the markets where open-topped cars have been more popular. Instead, the company will put greater emphasis on crossovers.

“We need to simplify the product offering of the next Golf and have fewer variants, because we have got to get more cost-effectiveness into our company. We need to be more agile and more innovative, and this is one example,” said chairman Herbert Diess.

Volkswagen Golf Mk7 Cabriolet

Rendering of a potential Mk7 Volkswagen Golf Cabriolet

Diess is said to believe that the MQB architecture which underpins the Golf range has been over-engineered for the price points the products are positioned at, and is said to have pushed engineers to reduce related expenses. Alongside costs reductions, Diess is also pushing for greater margins due to concerns that the company’s £1.5 billion (RM7.66 billion) investment in the new MEB platform – on which the I.D. concept sits – will further strain the company’s profitability.

There’s another challenge for Diess, in the form of the workforce behind the Golf. “One of the biggest hurdles we still have to take is a new deal with the unions. I am looking for higher productivity and to restructure the value chain to focus on new technology. We are talking, and I hope we can have an agreed plan to have a fix in place by 2020,” he said.

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Mick Chan

Open roads and closed circuits hold great allure for Mick Chan. Driving heaven to him is exercising a playful chassis on twisty paths; prizes ergonomics and involvement over gadgetry. Spent three years at a motoring newspaper and short stint with a magazine prior to joining this website.

 

Comments

  • Worst timing to buy VW … Bad quality to worse quality

    Like or Dislike: Thumb up 3 Thumb down 35
    • Same L0rr on Oct 28, 2016 at 8:32 am

      Dont play play with the quality of DSG at volkswagen!

      Like or Dislike: Thumb up 0 Thumb down 6
      • Ask VGM to shut down production in Malaysia and import only la. Even before dieselgate, VW already known for DISCOUNT BRAND. After DSG fiasco, you got stocks tried to let go with huge discount for 2 years also no people buy. VPCM gotta choose: “NO DISCOUNT” or “NO SALES”

        Like or Dislike: Thumb up 2 Thumb down 1
  • jamal on Oct 27, 2016 at 6:33 pm

    inb4 nasib baik Proton X nak join.

    Like or Dislike: Thumb up 1 Thumb down 0
  • krs189 on Oct 28, 2016 at 8:41 am

    summary = VW has no more money due to dieselgate scandal.

    Now, go and ask you German Government to bail you out. simple solution.

    Like or Dislike: Thumb up 0 Thumb down 7
    • FYI krs, VW just reported net profit of 2.28 billion euro in the 3rd quarter of 2016.

      Like or Dislike: Thumb up 2 Thumb down 1
      • Fikir Mendalam on Oct 30, 2016 at 10:57 am

        In detail news says, the “profit” mainly came from cost cutting. Not sales as number is shrinking after dieselgate. VW even stop producing and selling diesel models in some countries.

        Like or Dislike: Thumb up 0 Thumb down 0
        • Mikey on Oct 31, 2016 at 9:45 am

          Fikir betul ke, the profits are from increase in sales of Audi & Porsche la. Looks like your detail news are not detail enough. You should read the Bloomberg news.

          FYI, VW are on course to hit 10 million units in sales by end of December despite the dieselgate.

          Like or Dislike: Thumb up 0 Thumb down 0
  • I say it is the most sensible thing to do in-order to cut cost. Not many chairman dare to say it in public like Herbert Diess.

    Like or Dislike: Thumb up 5 Thumb down 0
 

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