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2025-12-16 10:48:57
[First Time in History! Volkswagen to Close Dresden Plant on Tuesday] 1. Volkswagen will officially close its iconic "transparent factory" in Dresden, Germany, on Tuesday. This will be the first time in the group's 88-year history that it has shut down a vehicle assembly plant in Germany. Since its opening in 2001, the plant has produced over 165,500 vehicles and has focused on electric vehicle manufacturing in recent years. 2. Volkswagen's brand head, Thomas Schäfer, previously explained that although the decision was painful, it was "economically necessary." The shutdown is mainly due to multiple factors, including rising energy costs in recent years, weak sales in several key markets such as Europe, China, and the United States, and pressure from US tariffs, which have put enormous pressure on the company's cash flow. 3. This move is part of Volkswagen's plan announced last year to reduce German production capacity and cut 35,000 jobs. In fact, the entire German automotive industry is facing structural challenges. Clemens Fuest, director of the ifo Institute, warned that the German economic downturn is "becoming increasingly severe," and German Chancellor Friedrich Merz also acknowledged that the economy has fallen into a "structural crisis," with many industries experiencing a significant decline in competitiveness. Besides Volkswagen, German automakers such as BMW and Mercedes-Benz are also facing continued pressure this year from high energy prices, intensified competition from Chinese brands, and US tariffs.
