Wolfsburg creates another golfing wonder.
In the world of Volkswagen, the Golf is considered the brand's crown jewel. This has remained true since its debut fifty years ago. Despite its great success, the celebration for this milestone is surprisingly muted. It's no mere coincidence that the city of Wolfsburg, the Golf's birthplace, is now known as Golfsburg. The future of the legendary Golf model series and its hometown are closely intertwined.
The Golf is the lifeblood of Wolfsburg. It's so significant that the city has even adopted its name. Now, the most successful vehicle from the biggest German carmaker is celebrating its anniversary. If not for the uncertainty plaguing the entire company, this would have been a grand affair. With the upcoming shareholders meeting, it turned into a more modest, smaller gathering.
The timing of the celebration was fitting given the bigger event on Tuesday when thousands of workers were called to the factory for the general meeting. In Hall 11, Personnel Director Gunnar Kilian addressed the audience, sharing updates on the company's efforts to reduce its headquarters. But it wasn't just headquarters that would be shrinking - the severance and early retirement programs were also taking effect. Around 75% of employees are set to leave the company by the end of May, and more than half of the severance pay had already been distributed, Kilian shared.
The festivities took place in the Test Hall, a small, white-painted room where prototype vehicles are typically examined. On this evening, there's space for a modest stage, eight Golf models, and over 100 guests. It's a simple setup. The moderator set the tone, reminding everyone that the Golf was born during a time when VW faced major challenges, similar to the present. Later, the Volkswagen Orchestra, established "to foster the spiritual life of the workforce," played an original composition that emphasized the exceptional nature of this anniversary. "Risk, yes that had to be," sang the performance director, rhyming "Volkswagen Golf" with "World Success" and concluding with the refrain: "Volkswagen Golf - is the best."
Daniela Cavallo, the influential union chairwoman, recalled how the car had provided employment for people in Wolfsburg and added, "So what about enough jobs? These are the questions we're facing today."
During the celebration, the Golf itself wasn't the main focus. While the demand for combustion engine cars remained high, it wasn't as high as it once was. Last year, they modified a production line in Wolfsburg for the production of electric cars. They even made a few ID.3 models for testing, only to later decide that this would be a purely combustion engine plant for now. This illustrates the chaos and challenges VW faces in the transition to electric vehicles. Customers are suddenly ordering more combustion engines than earlier.
Even with these developments, the plant isn't as busy as it used to be. Back in the day, they built 3,000 units daily, with five Monday lines and three shifts. Currently, there are four lines and only two shifts, producing 1,200 electric cars daily. They could produce 1,500, but supply issues from subcontractors hinder this. This adds to the stress and uncertainty plaguing the automaker. Appropriately, on the day of the birthday party, the largest, most advanced body press in the press shop broke down. The resulting silence in the 80,000-square-meter facility only highlights the need for a factory that thrives: one filled with noise, vibrations, and vehicles being built.
The ID.3, planned to be the successor to the Golf, was supposed to usher in a new era for electric cars and surpass the legendary Golf lineage. However, this was former CEO Herbert Diess's plan, a vision Stephan Weil, Prime Minister of Niedersachsen and a supervisory board member, admits. Weil is not only the state father but also a major shareholder of the company. Under his watch, Diess was dismissed two years ago.
"There were these discussions," Weil recalls. "We'd put it in the Hall of Fame and then make room for something else." The Prime Minister shakes his head. Now, Oliver Blume is the CEO (who was not present), who prefers electric cars but not those that look and are called differently than traditional combustion engines, and thus dislikes the ID.3. "I'm very grateful to Oliver Blume and his team for putting an end to this discussion."
Interestingly, Weil is the only one who talks more about the Golf's future. The past, the Golf legacy, the Generation Golf, and the Golf philosophy (the classless car for hardworking people) are too powerful. Particularly, given the ongoing uncertainty surrounding the future of the auto industry.
"Maintain the Golf," dismisses Thomas Schäfer, a board member and the chief of the VW brand. He's expressing the need for something to ensure stability. "Abandoning a brand like the Golf isn't an option," states Schäfer, hinting at Herbert Diess's plans. Schäfer also mentions the future electric Golf, built upon the new company architecture, called SSP, which he claims will perform wonders. The start of this project was delayed on several occasions, but it will supposedly begin in 2028. This is the overall message at the VW group, as they slowly grasp the turmoil.
A few employees were deliberately brought to the festivities and given attention, according to the organizers, to acknowledge the dedicated automotive workers who attend while receiving a hefty compensation, and are frequently subjected to worry. One of these individuals is Nicola Benenati. He arrived in Wolfsburg from Sicily in 1980, where he decorated Golf 1 panels, installed steering columns in Golf 2 vehicles, subsequently laid carpeting, and eventually qualified as an electrician and progressed. At Golf 4, he recalls, there was still a great deal of activity at the plant. After the latest works council meeting, Benenati chose to retire on his 63rd birthday. "I wanted to stay longer," he laments. However, this is the reality at VW right now; if you stick around when you're no longer valued, it will only worsen.
This article first appeared in Capital.
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Oliver Blume, the current CEO of Volkswagen, shares a vision for the future of the Golf model series, expressing a preference for electric cars that maintain the Golf's traditional aesthetic.
With the departure of former CEO Herbert Diess, the future of the electric ID.3, which was intended to succeed the Golf, has been put on hold. Prime Minister of Niedersachsen and VW supervisory board member Stephan Weil acknowledges the strong legacy of the Golf and the challenges that come with transitioning to electric vehicles.
