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VW Stops Production at German Site for First Time

Volkswagen ends over 20 years of production at Dresden plant to focus on AI and robotics research, amid plans to cut 35,000 jobs in Germany by 2030.

  • On Tuesday, Volkswagen halted vehicle production at the `Transparent Factory` in Dresden, planning to convert it into an R&D centre for chips, AI, and robotics, with the Technical University of Dresden expected to occupy about half.
  • Mounting margin pressure and a 2030 restructuring plan including 35,000 job reductions shaped the decision as Volkswagen brand boss Thomas Schaefer said ending production this month was economically necessary.
  • A red electric ID.3 GTX signed by workers was the final vehicle built at the glass-walled `Transparent Factory`, which produced about 6,000 cars a year versus more than 500,000 at Wolfsburg, while Volkswagen still operates some eight production sites in Germany.
  • Volkswagen said workers at the Dresden site will be offered termination agreements and transfers, but IG Metall official Stefan Ehly warned the company will struggle to keep all employees employed.
  • Volkswagen's 2030 restructuring and R&D pivot reposition the Dresden site as a tech hub focused on chips, artificial intelligence and robotics, with the Technical University of Dresden expected to occupy about half, amid plans to cut 35,000 jobs by 2030.
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VW stops production at German site for first time

The last car rolled off the production line at a Volkswagen site in Dresden on Tuesday, marking the first time in company history that it has stopped production at a German factory as cost cuts bite.

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Lean Left

For the first time he stopped production in a plant in Germany, and he struggled to get out of a much bigger crisis than her.

·Italy
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One more sign of the change that the automotive industry is experiencing: for the first time in 88 years of history, Volkswagen is going to shut down the production of vehicles in a plant located in Germany. The Dresden factory, from now on, will no longer produce cars, its new function will be to become an AI research campus and chips.

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The Dresden plant has always been considered Volkswagen's showcase, if only because it is a special factory with glass walls.

·Hungary
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The factory has produced more than 165,000 vehicles in almost a quarter of a century.

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Biznis Info broke the news in on Tuesday, December 16, 2025.
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