For the first time in 88 years: Volkswagen shuts down a plant in Germany
15 December 07:11
The German automaker Volkswagen plans to stop producing cars at its plant in Dresden. The closure of the plant in Germany will be the first in its 88-year history.
This was reported by the Financial Times, "Komersant Ukrainian" reports.
The company is preparing to stop production at its Dresden plant on December 16, the publication reports. This decision was made amid financial difficulties and falling demand for cars. Cars of the largest European manufacturer sold worse than expected in China and Europe, and in the United States, sales were negatively affected by trade duties imposed by the Donald Trump administration.
The publication writes that due to weak demand, the concern is experiencing pressure on its finances and is therefore forced to cut costs. The company has already reduced its investments for the coming years and is currently reviewing which projects should be abandoned. Bernstein analyst Steven Reitman said that a separate problem for Volkswagen was the need to invest additional funds in new gasoline engines.
The plant in Dresden has been operating since 2002: first, it assembled the premium Phaeton sedan, and later the ID.3 electric car. The closure is part of a plan to reduce capacity that the company had previously agreed with trade unions. As part of the same agreement, Volkswagen intends to cut 35,000 jobs across Germany. The plant’s building is to be leased to the Technical University of Dresden to create a research campus for artificial intelligence, robotics and microchips, and to be used as a tourist attraction.
