Volkswagen to Halt Production at Dresden Factory
The upcoming shutdown marks the first time in Volkswagen’s 88-year history that a production line in its home country, Germany, will be completely halted. Since its opening in 2001, the Dresden facility has produced over 165,500 vehicles and has recently focused on manufacturing electric cars.
Earlier this month, Volkswagen brand head Thomas Schafer stated that, although difficult, the closure was necessary “from an economic perspective.” Last year, the automaker also announced a plan to cut 35,000 jobs and reduce production capacity within Germany.
Volkswagen has experienced a notable decline in profits as a result of weak sales across Europe, China, and the United States. Other major German carmakers, such as BMW and Mercedes-Benz, have confronted similar challenges in 2025.
The German automotive sector has been particularly affected by rising energy costs. Following the escalation of the conflict in Ukraine in February 2022, the European Union sharply curtailed imports of Russian oil and gas, turning to costlier alternatives.
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