Dresden Transparent Factory Will Be Affected: Volkswagen Plans to Stop Production of ID.3 Electric Cars

News on September 19, according to "Autoweek" citing sources, Volkswagen plans to stop producing the ID.3 electric car at its transparent factory in Dresden, Germany. This is the group's CEO Oliver Blue. One of the measures taken by Tom to cut costs. Although the media did not disclose the specific time of the suspension of production, the decision has been confirmed.

The Transparent Factory began operations in 2002, initially producing the high-end Volkswagen Phaeton sedan. By 2017, the factory began producing electric vehicles, starting with the Volkswagen e-Golf. At the end of 2020, the factory stopped production of the e-Golf and began production of its replacement, the ID.3, in 2021. By 2022, the factory will produce a total of 6,500 ID.3 electric vehicles

The transparent factory features glass walls that allow customers to watch the final stages of vehicle assembly. Considered an architectural masterpiece, the building is also used to host various events, ceremonies, and even concerts and operas. The plant is smaller than Volkswagen's other electric car plants in Germany and has no body building, painting or stamping shops. According to sources, the factory will continue to operate and its 300 full-time employees will be assigned to other tasks, including innovative production and testing. A Volkswagen spokesperson declined to comment on these rumors

It is worth noting that the ID.3 will continue to be produced at the Volkswagen Zwickau plant, which is Volkswagen’s main base for the production of ID. series electric vehicles in Germany. Starting this fall, ID.3 will also start production at the Wolfsburg factory, but the initial production volume will not be large. The discontinuation of ID.3 production in Dresden may also be related to its start of production in Wolfsburg

Volkswagen Group CEO Oliver Blum is Seeking to improve returns on Volkswagen brands and achieve profit growth of $10.7 billion by 2026. One source told Bloomberg that annual operating costs for the Transparent Factory range from 60 million to 70 million euros. Ending production at the plant will save approximately 20 million euros.

In recent years, European consumers have been affected by the rising cost of living caused by rising inflation and interest rates, which has also affected the sales of electric vehicles to a certain extent. In addition, VW faces increasing competition from manufacturers such as Stellantis and Tesla, as well as Chinese automakers. According to the editor’s understanding, Volkswagen’s strategic adjustments will continue to affect the competitive landscape of the future electric vehicle market.

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