Volkswagen closes Dresden plant: historic decision after 88 years of operation
Kyiv • UNN
Volkswagen is ceasing production at its Dresden plant from December 16, marking the company's first plant closure in Germany in 88 years. The reasons are declining demand in China and Europe, as well as the impact of US tariffs.
The German car concern Volkswagen will stop producing cars at its plant in Dresden. This will be the first time the company's plant in Germany has been closed in all 88 years of its existence. This is reported by the Financial Times, according to UNN.
Details
It is noted that the company plans to stop production at the Dresden plant from December 16.
The closure of the production line is primarily due to declining demand in China and Europe, as well as the impact of US tariffs on sales in the US.
Volkswagen CFO Arno Antlitz said in October that the company's net cash flow for 2025, previously expected to be close to zero, could turn slightly positive. However, experts emphasize that pressure on the automotive group due to these factors will remain.
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According to the publication, due to low demand, Volkswagen is experiencing financial pressure and is forced to reduce costs. The company has already reduced the volume of investments for the coming years and is reviewing projects that can be abandoned.
Bernstein analyst Stephen Wrightman emphasized that an additional problem for the concern was additional funding for new gasoline engines.
The plant in Dresden has been operating since 2002: initially, it assembled the premium sedan Phaeton, and later - the ID.3 electric car. The closure of production is part of a plan agreed with trade unions to reduce capacity. As part of this agreement, Volkswagen also intends to cut 35,000 jobs in Germany.
The plant building is planned to be leased to the Dresden Technical University, where a research campus will be created for developments in the field of artificial intelligence, robotics and microchips. In addition, the premises will be used as a tourist attraction.
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