VW gears up for first production closure in Germany in its 88-year history

Volkswagen will close its Dresden plant after Tuesday, marking its first production shutdown in Germany's 88-year history. This decision comes amid declining sales in China, Europe, and U.S. tariffs affecting profitability.

The automaker is under pressure to manage its €180bn investment budget from 2023 to 2027 due to a longer lifespan for petrol-engine cars. Analysts indicate ongoing cash flow pressure, with spending cuts expected.

Dresden has produced less than 200,000 vehicles since 2002. The plant, originally a symbol of engineering innovation, will become a research campus for artificial intelligence and robotics, with a €50mn investment over seven years.