Volkswagen has made the decision to close its Dresden Glass Factory, where the iconic electric model ID.3 was manufactured. This factory, known as the “glass factory,” became a symbol for the brand since its opening in 2002, due to its production of vehicles in a luxurious environment with a high level of technology.
The closure of this factory represents a statement about the reality of Volkswagen’s electric program, which has failed to meet the expected targets due to low demand for electric vehicles in southern Europe. In addition, the VW ID.3 has not resonated with buyers’ preferences and has received criticism for its malfunctioning multimedia system and poor finishes.
In light of this situation, Volkswagen is considering transferring the production of the ID.3 to China, where a virtually identical model is already being manufactured. The competition from Tesla and the entry of Chinese brands have affected the German manufacturer, who has no room to lower the prices of its electric cars. The option of moving production to China and bringing the vehicles by ship, where costs are lower, is emerging as a viable alternative.
In terms of other alternatives, Volkswagen could also consider moving part of the ID.3 production to the Zwickau or Wolfsburg factories. The Glass Factory produced 6,500 cars last year and employs 300 workers who could potentially be relocated by the company.
These measures are part of Volkswagen’s restructuring plan, led by Oliver Blume, the CEO of the group, with the aim of improving the profitability of the company. In addition to the closure of the Glass Factory, the workforce and production volume have recently been reduced in the Zwickau plant, the largest electric vehicle factory in Europe, where VW ID.3, Audi Q4, and Cupra Born models are produced.
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