Volkwagen made an effort to upgrade the "fit and finish" elements of its venerable Golf hatchback models for 2001 with a number of improvements. Interior cloth fabrics were upgraded, for instance, and the cupholders got an update in an effort to make them more durable (they tended to break easily in earlier models). Leather upholstery was added to some trim packages, side-curtain head-protection airbags were offered as optional equipment, audio controls were added to the steering wheels of some versions, and the optional sports suspension was tightened up.

Overall, the Golf was available in five different trim packages. The base two-door GL trim came with a 115-hp, 2.0-liter 4-cylinder engine, while the GL TDI came with a 90-hp, 1.9-liter diesel engine with the TDI (turbo direct injection) feature. The four-door GLS versions were available with either the base 115-hp 4-cylinder engine, the 90-hp diesel engine (called the GLS TDI trim), or a 150-hp, 1.8-liter gas engine (called the Golf GL 1.8T).

Standard equipment for the GL and GL TDI included air conditioning, anti-lock brakes, dual airbags, tilt steering, and an AM/FM/cassette audio system. The GLS packages added cruise control (also standard on the GL TDI), power windows, power door locks, and child safety door locks. The GLS 1.8T also added traction control. Optional equipment included a CD player and a moonroof, as well as a premium sound system.

The Volkswagen Golf, and especially the turbo models, continued to receive high marks from the drivers, who liked the car's power, styling, build quality, safety features, and handling. As always, though, some drivers noted that the car needed too many trips to the repair shop. There were complaints about VW customer service as well.