Overview

• Volkswagen announced plans to reduce production at its Zwickau plant and end vehicle assembly at the Dresden Gläserne Manufaktur by the end of 2025.
• The automaker is prioritizing cost-cutting measures, delaying its profitability target of 6.5% operating margin from 2026 to 2029 due to market challenges in China and the US.
• Two new affordable electric vehicles, the ID.2 and ID. Every1, are set to launch by 2027 but will be manufactured outside Germany to maintain competitive pricing.
• Saxon auto suppliers and regional leaders, including Minister President Michael Kretschmer, are advocating for federal support and fair competition among German production sites.
• Discussions are underway to repurpose the Dresden facility as an innovation hub in partnership with the Technical University of Dresden, potentially preserving some jobs and fostering research.