Volkswagen halts production at the Dresden plant, marking the first shutdown of a production line in Germany, due to weak sales and financial pressures.

Volkswagen has announced the closure of the factory in Dresden, a first in the company's 88-year history in Germany. This decision is the result of weak sales in China, reduced demand in the European market, and the impact of tariffs imposed by the U.S. The company is facing financial difficulties, with an estimated investment budget of 160 billion euros for the next five years, but cash flow pressures are also expected in 2026. The Dresden factory, which has produced fewer than 200,000 vehicles since 2002, will be transformed into a research campus for the Technical University of Dresden, with a joint investment of 50 million euros. Volkswagen will continue to use the facilities for car deliveries and as a tourist attraction.