Volkswagen Restructures Production Plans, Impacting Saxony's Auto Industry

VW shifts focus to affordable EVs produced outside Germany, raising concerns for Saxony's workforce and suppliers.

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.