Volkswagen to end ID.3 production at Dresden factory

On the Dash:

• Volkswagen will stop production of the ID.3 at its Dresden plant for the first time, leaving the plant temporarily without vehicles.
• The Transparent Factory will become a high-tech innovation campus in partnership with TU Dresden, with a focus on AI, robotics, and other advanced technologies.
• VW guarantees job security for Dresden employees through 2030 and will integrate them into its collective bargaining agreement in 2026.

Volkswagen is set to halt production of the all-electric ID.3 at its Dresden Transparent Factory later this month, leaving the plant without vehicles on its assembly line for the first time since opening. The Dresden facility, known for its floor-to-ceiling glass walls, will pivot to a new innovation campus developed in partnership with Dresden University of Technology (TU Dresden). 

The Transparent Factory currently employs around 250 people. Initially, VW planned to retain only 135 roles, but later confirmed that 155 employees would remain following a visit from VW brand chief Thomas Schäfer and group works council chairwoman Daniela Cavallo.

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To encourage relocation, Volkswagen is offering a 30,000 euros signing bonus, roughly $35,000 at current exchange rates, for employees willing to transfer to the company’s headquarters in Wolfsburg, about 300 kilometers (186 miles) away. The incentive was met with boos from staff at a recent meeting, according to attendees.

While production of the ID.3 will cease, the facility will be repurposed as a hub for advanced research and innovation. The campus will focus on artificial intelligence, microelectronics, chip design, materials science, robotics, and circular economy technologies. TU Dresden will lease approximately half of the Transparent Factory, with Volkswagen supporting the collaboration through research contracts.

VW has guaranteed job security for its Dresden employees through 2030. Starting in early 2026, workers will be included in VW’s collective bargaining agreement, which is expected to provide higher wages and improved employment terms.