The fate of the Dresden factory is sealed. According to German media, Volkswagen is preparing to stop production of the ID. 3, but also any other electric car, within this historic site. The move comes amid a massive cost-cutting campaign led by CEO Olivier Blume.
The Dresden plant, Volkswagen’s historic production site, is now determined on its fate. According to sources close to the automobile group cited by the German media Automobilwoche, the brand has decided to end production of the ID. 3 within the famous factory.
Inaugurated in 2002, the Dresden factory has gone down in history for its excess, marked in particular by its avant-garde and grandiose architecture. Nicknamed Transparent Factory (in reference to the numerous glass surfaces which allowed buyers to observe the final assembly stage of their vehicles), the Dresden site produced no less than 150,000 cars. First the Phantom range from Volkswagen, the Bentley Flying Spur, then the first VW electric models like the e-Golf, then the ID. 3.
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Dresden factory will no longer make electric cars
In 2022, the factory has manufactured no less than 6,500 examples of the German electric city car. As the German media specifies, this decision comes in a complicated economic context for the manufacturer. While competition in the electric car market is ever more fierce, the brand’s CEO Olivier Blume is seeking by all means to reduce the company’s costs and to increase its yields by 6.5% by 2026 (i.e. 10.7 billion euros).
And if the Dresden factory conveys a prestigious image for VW, the site in reality offers production capacities that are paltry compared to the group’s other German factories. For good reason, no bodywork, paint shop or pressing machine in Dresden. Knowing that the annual operating costs of the factory are between 60 and 70 million euros, Volkswagen could save 20 million euros per year by ceasing EV production in Dresden.
Please note, the transparent factory will not close its doors. The 300 full-time employees will be assigned to additional tasks, particularly on the testing and design of innovative technologies. On the other hand, we do not yet know what fate will be reserved for the 2,000 temporary workers who work there… As a reminder, this news comes as Volkswagen has just announced the elimination of 300 positions within the Zwickau factory, the main site of production of the brand’s EVs.