Auto Industry Crisis: Volkswagen Exits Dresden
Business
Volkswagen has shut down a plant in Dresden, marking the first time in the company’s nearly 90-year history that production has been permanently halted in Germany. The move underscores the deepening crisis in the country’s auto industry.
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German automotive giant Volkswagen has closed its plant in Dresden, becoming the first time in the company’s history that a factory on German soil has been permanently shut down. The final Volkswagen ID.3 rolled off the legendary assembly line before production came to an end.
The facility, which previously produced models such as the Phaeton and later electric vehicles, fell victim to declining demand, rising production costs, and intensifying competition, particularly from Chinese automakers. The last vehicle produced at the plant will be sent to a museum.
The closure comes amid a broader downturn in Germany’s automotive sector. Volkswagen Group’s profits have dropped sharply, Mercedes has seen its earnings nearly halve, while BMW remains stagnant with no signs of growth.
Since 2019, the crisis in the industry has reportedly cost Germany around 120,000 jobs, with the country experiencing months of strikes and labor unrest.
Against this backdrop, the German government is promoting closer cooperation between the automotive and defense industries. Critics, however, argue that instead of modernizing, the sector is becoming increasingly dependent on foreign — particularly Chinese — technologies and components.
The facility, which previously produced models such as the Phaeton and later electric vehicles, fell victim to declining demand, rising production costs, and intensifying competition, particularly from Chinese automakers. The last vehicle produced at the plant will be sent to a museum.
The closure comes amid a broader downturn in Germany’s automotive sector. Volkswagen Group’s profits have dropped sharply, Mercedes has seen its earnings nearly halve, while BMW remains stagnant with no signs of growth.
Since 2019, the crisis in the industry has reportedly cost Germany around 120,000 jobs, with the country experiencing months of strikes and labor unrest.
Against this backdrop, the German government is promoting closer cooperation between the automotive and defense industries. Critics, however, argue that instead of modernizing, the sector is becoming increasingly dependent on foreign — particularly Chinese — technologies and components.
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