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Golf production coming to an end at Mexico

2slowvw

Moderator
Location
VA
Car(s)
2022 Tesla Model 3
I think the whole fit and finish argument is kindof meh at this point. I think the Auto industry as a whole has improved in quality. I mean remember what Hyundai and Kia looked like not too long ago? I think most car companies even the regular non lux brands have up their interior games significantly.
 

krayziejcs

Passed Driver's Ed
Location
FL
Not sure how much the place of assembly has to do with this but...when it comes time to purchase a new German made GTI, will the rebates/incentives be as good as the ones we see now? $6-8k under MSRP.
 

heiney9

Go Kart Champion
Location
Illinois
Car(s)
2017 GTi Sport DSG
I haven't heard anyone mention the exchange rates between different countries. That's one of the reason's German cars are more expensive in the US. There are lots of incentives to manufacture in different parts of the World also.

A car from Germany should be he same as a car made in Mexico if they are selling the exact same car. I am assuming the reason they are pulling out of Mexico is more related to political issues, ie, unions, taxes, incentives, etc.

I don't believe for a minute it's related to build quality or qualified work force. They spent A LOT of money setting up and training in Mexico. For them to move back to German production certainly has something to do with things we aren't as privy to. You don't invest that kind of money in a long term plan and then just willy-nilly decide to pull the plug. It probably has a bit to do with economies of scale. I don't think they are getting the output from Mexico they need to be as profitable, ie, not selling enough cars that are manufactured there to make it as worthwhile as their long term projections were. Many factors like this I'm sure are in the mix.
 

dizzyMongoose

New member
Location
Canada
Just a reminder here, these pieces aren't saying they're stopping production in their Mexican factories, just that they're stopping Golf production. The factories are presumably to be reconfigured to assemble different Volkswagen models for the North/South American markets.
 

heiney9

Go Kart Champion
Location
Illinois
Car(s)
2017 GTi Sport DSG
True, but the Golf is a big seller, but maybe the Atlas and revamped Tiguan are a better fit in the factories.
 

Trancebolt

Ready to race!
Location
California
From my research alot of companies have factories in mexico; including mercedes trucks. tractor trailers and big trucks, and theyve got some of the best freight trucks in the business. It isnt some dilapidated old barn that theyre welding these golfs together in. Some of the german factories are actually older.....Every generation of those robots is just as much better as the new gen of cars. Used to work in a fabrication factory...
 

njswider

Ready to race!
Location
South Jersey
Car(s)
MK7 Golf R
My MK6 GTI (Wolfsburg) had no real issues besides the waterpump and some creaks/rattles here and there. It was totaled too soon and I moved to MK7 GTI (Mexico) and the only issue I had was a squeaky clutch pedal which just need to be lubricated and maybe a couple rattles. Now in MK7 R I have not had any issues whatsoever but I do not believe it being assembled in Germany had anything to do with it. Same platform, same parts sourced from all over.

My only thing is I feel wherever a car is designed it should be assembled. American in America, German in Germany, Japanese in Japan, etc. but obviously economics influence all of this.
 

demi9od

Drag Race Newbie
Location
NC
So no more el cheapo Golfs and GTIs starting 2019..,

That's really what I am taking away from this more than anything else. Good luck getting $6-$7k off MSRP on anything made in Germany.
 

wlfpck

Ready to race!
Location
United States
There was not much of a price difference going from a MK6 to the MK7. Hopefully there won't be too big an increase in price going to the MK8.

Keep in mind they have to compete with the other cars in the segment. For the golf... The Elantra GT, Focus, etc.

For the GTI... the Subaru WRX, Focus ST, etc.

The competitor pricing will drive the VW pricing. Remember that VW is not the luxury brand. That's Audi. VW has to compete as the everyday brand. Ford, Honda, Hyundai, etc. While we all know that VW has a better interior and so forth... They can't just all of a sudden say a GTI is now 8K higher than a Subaru WRX.

At the same time... the pull of the golf out of Mexico could be to free up production space for the Tiguan and Atlas. In the U.S., trucks and SUV/crossovers have taken over the market. There's articles about how the Honda Accord and the Toyota Camary have declined drastically in sales as the CRV, Rav4 have increased drastically. The market here for Crossovers is so high... that people don't even want a fit. They want the new HRV. Mazda released the CX-3. Toyota released the CHR.

Golf sales have been dropping along with a lot of other vehicles. This isn't a matter of "my GTI can do everything a Rav4 can". We on this forum are car enthusiasts. We care about performance and utility. That's why we know what a hot hatch is. Unfortunately, in the U.S. everyone else wants a crossover.

The real question is why someone made the decision not to bring the T-Roc to the U.S. Especially given how well Crossovers sell here.
 

heiney9

Go Kart Champion
Location
Illinois
Car(s)
2017 GTi Sport DSG
If it costs more to manufacture/ship cars from Germany then in order to stay competitive in the pricing model, they will no doubt start cheapening things to save costs. It's the only solution. But I have never seen a breakdown comparison of what it costs per car at the Pueblo plant vs. Wolfsburg.

Perhaps if the SUV's are going to be made in the Pueblo plant the profit might offset the Golf's cost of being made in Wolfsburg and they can continue to be competitively priced w/o sacrificing the upscale feel of the Golf and just be resigned to making less profit per Golf in the US
 

takemorepills

Ready to race!
Location
USA
My concern would be that VW drops the Mk8 in the USA. Already, the Mk7 is a touch on the "high" side of new car pricing in it's small segment. If Mk8s had to come from Germany, would VW even bother? I see a LOT of GTI love here in the PNW. I feel like either the Dieselgate deals on GTIs or VW moving people from TDIs to GTIs has caused the roads here to be absolutely flush with GTIs. They are not as common as Prius yet, but I see more GTIs than I would ever expect. But maybe in the entire USA they no longer fit into the VW corporate goals?

The automaker I am really respecting right now is Honda. They seemed to have lost their way, the recent CivicX was a stumble IMO also, but the new 2018 Accord shows that Honda is doubling-down AGAINST crossovers and SUVs. Even though Honda is in a good position with very popular crossovers and SUVs, they still put all of their heart into the latest Accord. I wonder if it is because it was the car that made them what they are today?
2 types of turbo motors, one from the CTR
6MT available on both turbo motors
2 different types of ATs
LED headlights and tails on every trim
all kinds of standard features
reasonable pricing

I feel like VW may just abandon the US market with the Mk8
 
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