Volkswagen Closes Historic Factory in Germany, ID.3 GTX as the Last Work

JAKARTA - Volkswagen's long history in Germany has officially entered a new phase. For the first time in 88 years, the Wolfsburg-based automotive manufacturer has stopped producing vehicles at one of its main facilities in Dresden.

The factory, which has been known as the Transparent Factory thanks to its iconic glass wall design, covers 24 years of manufacturing activities since it began operating in 2001. This step was taken amid global business pressures, which forced Volkswagen to adjust its production strategy.

Quoted from the New York Post, Friday, December 19, Volkswagen has previously hinted at production cuts due to weakening market demand in Europe and China. The situation is becoming more challenging due to US import tariffs that are suppressing sales in one of their largest export markets.

However, the closure of the production line does not mean that this factory is completely abandoned. Volkswagen ensures that the Dresden facility continues to operate with a new function as a technology research center.

The development focus is directed at artificial intelligence, robotics, and step chip design, which are believed to be the foundation of the future of the global automotive industry. "We do not take lightly the decision to end vehicle production at the Transparent Factory," said Volkswagen CEO Thomas Schäfer.

He stressed that this decision was entirely based on long-term economic considerations. Volkswagen has also reached an agreement with the workers' council regarding the fate of 230 employees at the Dresden plant.

They will get severance pay, early retirement, or be transferred to other Volkswagen facilities in Germany. For more than two decades, this factory has produced a number of iconic models, ranging from the luxury sedan Phaeton, the electric hatchback e-Golf, to the ID.3.

As a sign of the end of the production era, a red Volkswagen ID.3 GTX unit became the last car to come off the assembly line. The car is signed by the workers and will be displayed as a monument to the long history of the Dresden factory.