Volkswagen to close a plant in Germany for the first time
The well-known German car manufacturer “Volkswagen” will close one of its operating plants in Germany for the first time in its history due to serious financial difficulties.
German “Volkswagen” announced that it will cease operations at its factory located in the city of Dresden on December 16. The company has been operating for 88 years, but this is a rare occurrence in its history.
The main reason for the plant closure is financial problems. Recently, sales of “Volkswagen” cars have sharply declined in China, where the company has a large market. At the same time, demand in Europe is low, and the US has imposed new customs duties on European cars, which has dealt an additional blow to the company.
Thomas Schäfer, the CEO of “Volkswagen,” noted that the decision was not easy, but economically, there was no other way out.
In addition, the company is facing difficulties in the electric car sales sector and is forced to compete with cheaper Chinese car manufacturers.
In the third quarter of 2025, “Volkswagen” recorded a loss of 1.1 billion euros, and the company’s total losses, according to its estimates, could reach up to 5 billion euros.