The last car rolled off the production line at a Volkswagen site in Dresden on Tuesday, marking the first time in company history that it has stopped production at a German factory as cost cuts bite, reported AFP.
A red electric ID.3 GTX signed by workers would be the last car made at the plant, Volkswagen Saxony said, making the glass-walled “Transparent Factory” the first domestic site in the company’s 88-year history to have production completely shut down.
“It was, however, absolutely necessary from an economic perspective.”
The carmaker has said the site would become a research and development centre focussed on chips, artificial intelligence and robotics, with the Technical University of Dresden expected to eventually occupy about half of it.
“The decision to end vehicle production at the Transparent Factory after over 20 years was not an easy one to make,” Volkswagen brand boss Thomas Schaefer said this month.
Automotive analyst Pal Skirta of Metzler bank told AFP that further tensions could be looming between Volkswagen and unions since the carmaker was planning to launch several low-cost electric models in coming years.
“With their cost structures it will be challenging to make it profitable,” he said. “They may have to reduce costs even further.”
