Mark 3 (1991–1999)

The third-generation Golf (given the internal designation Typ 1H) was launched in November of 1991, although it did not appear in North America until the spring of 1993. The delay in North America was due to Volkswagen's decision to supply U.S. and Canadian dealerships with Mark 3 Golfs (and Mark 3 Jettas) from the VW plant in Puebla, Mexico. Quality control problems led Volkswagen of America to reject Golfs and Jettas from Mexico; shortly thereafter, labor unrest at the plant delayed production there even further. The third-generation Golf and Jetta finally made it to North America, first as 1993 models in the San Diego, California area, then in the fall in the rest of North America as 1994 models. Three-door Golfs of this generation were mostly only available in North America in GTI form. The 1993 through 1995 Golfs were called "Golf III" in North America to make it clear that they were different from the previous generation. The second-generation Golfs had increased insurance premiums, due in part to stereo systems that could easily be stolen, and the third-generation models were meant to correct that situation. Once the badge distinction was no longer necessary for insurance purposes, the Mark 3 Golf lost its Roman numerals suffix for 1996.
The third-generation Golf was elected Car of the Year in 1992. For the first time a station wagon derivative was produced. The GTI variants (especially with the straight-four 4 cylinder engine) are considered to be the poorest of the performance Golfs, with significantly increased weight, but with minimal power increases. A "best of breed" VR6 variant exists which was available in a well regarded "Highline" trim; this 2.8 L VR6 engine gave a significant boost in power to 174 PS (128 kW/172 hp) for the Mark 3, a car weighing only about 1285 kg (2836 lb). Compare that to the Mark II GTI that weighed 285 kg (629 lb) less but had only 139 PS (102 kW/137 hp) and a much smaller engine to tune (1.8 L). A convertible version of the Golf Mark 3 was launched as the Cabrio (Typ 1E).
A 16-valve version of the third-generation Golf GTI was introduced in 1993. This model was greeted with a muted sense of disenchantment by the motoring press. The engine was enlarged to 2.0 L, with power now reaching 150 PS (110 kW/148 hp). While underpowered compared to the VR6, it was still relatively popular with driving enthusiasts in Europe (North America didn't get the proper GTI version, but had the name applied to the VR6 engine). Once again the Golf Driver version took its place as the official GTI-look-alike but with a more humble single-point injected 1.8 L engine.
The Golf Mark 3 was also the predecessor of the diesel craze that swept through Europe in the late 1990s and early 2000s, when Volkswagen introduced the direct-injection system with the 90 PS Golf TDI in 1993. The 1996 TDI, at 110 PS (81 kW/108 hp) for a 1.9 L engine, wasn't the first diesel engine installed in a road car to achieve over 50 hp/L, but it showed the public that diesel engines could be powered without losing their fuel efficiency, while also retaining massive amounts of low-end torque, in the TDI's case, 235 N·m (173 lbf·ft) at 1900 rpm.