VW ID.3: Demand Weakening - Transparent Factory Facing Closure?

According to brand chief Thomas Schäfer, Volkswagen is working on a future possibility for the site. Currently, the ID.3 is being assembled in Dresden, but it is also home to a development center and a delivery hub. A total of 340 employees work for VW in Dresden, who produced 6,000 ID.3 vehicles last year.

"Vehicle production is difficult to represent with such a production volume and the logistics situation in the middle of Dresden,” said brand chief Thomas Schäfer at the annual press conference of the group's volume brands. The conference focused on the core brand Volkswagen, Skoda, Seat/Cupra, and VW Commercial Vehicles.

Most of the Saxon VW employees work at the Zwickau plant

In total, Volkswagen Sachsen built more than 250,000 vehicles in 2023. The majority of them were produced at the Zwickau plant, which has more than 10,000 employees. According to VW, the Dresden plant was intended to become the "Center of Future Mobility" and serve as a beacon of the Volkswagen brand's electric competence. The Transparent Factory was originally built in 2002 for the assembly of the luxury model Phaeton. Production of the luxury limousine was discontinued in 2016. Since 2021, the ID.3 has been built there, in addition to Zwickau.

In addition to production, new or expanded business fields have been developed and expanded in recent years. For example, sales have gained increasing importance over the past few years. Up to 20 vehicle deliveries to customers are now possible – not least because a second delivery location has been set up in the manufacturing area. In 2022, 2,470 vehicles were handed over to customers, more than 95 percent of which were partially or fully electrified. The top models are the ID.3 and ID.4 produced in Saxony^.Additionally, the “Functional Testing Station" in Dresden has been further expanded. According to VW, it is an integral part of the global network of test stations for overall vehicle development. Its focus areas are the testing of assistance systems, mobile online services, engines, and chassis.