Volkswagen Shuts Down in Germany After 88 Years

It's OVER - Volkswagen SHUTS DOWN in Germany After 88 Years

As the German economy is in a deep crisis, Volkswagen will permanently end vehicle production at its Dresden plant in mid-December, marking the first full shutdown of a German production site in the company’s 88-year history — a blow to Germany’s industrial identity.

The closure is framed against a weakening German economy, rising energy costs after cutting off Russian supplies, and growing public dissatisfaction with Chancellor Merz’s government, whose approval ratings have fallen to historic lows - 21%!

European automakers, including Volkswagen, misjudged the pace and economics of the shift to electric vehicles, facing tougher competition from cheaper Chinese EVs while still needing to invest in both EVs and updated combustion-engine technologies.

Warning sign for German industry: Dresden is part of a broader restructuring that includes job cuts and production slowdowns at other German plants, signaling a deeper recalibration of expectations and raising questions about how resilient Germany’s auto sector—and industrial model—really is.

???? It's OVER - Volkswagen SHUTS DOWN in Germany After 88 Years

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????As the German economy is in a deep crisis, Volkswagen will permanently end vehicle production at its Dresden plant in mid-December, marking the first full shutdown… pic.twitter.com/yStNTGZ6pM

— Lena Petrova (@LenaPetrovaOnX)December 16, 2025