A CAR FOR THE FAMILY: The world’s most famous auto brand. It is a family car inspired by Adolf Hitler. His friend, Ferdinand Porsche, helped the Führer design ‘a car for the German family.’

Volkswagen’s Production Milestones

Founding era (1937–1945): The company began as part of National Socialist Germany’s KdF-Wagen project.

Post-war boom (1945–1970s): The Volkswagen Beetle became one of the most iconic cars in history. Over 21 million units were produced.

Expansion (1980s–2000s): Volkswagen diversified with models like the Golf, Passat, and Polo, cementing its place as a global brand.

Now, Volkswagen plans to halt production of vehicles at its Dresden plant on Tuesday. This marks the first time in the company’s history that a Germany-based factory has been shuttered.

With an installed capacity to build up to 37,500 cars a year, and the flagship of VW’s EV lineup, the Dresden plant’s closure comes against the backdrop of Germany’s broader deindustrialization

This started in 2022 when Berlin rejected the Russian energy supplies propping up its manufacturing base.

FT blames the closure on poor demand in Europe. Sales in China are weak. Additionally, 15% US tariffs on European vehicle imports have impacted the closure.

Volkswagen announced plans to transform the Dresden factory into an innovation campus. This announcement was made earlier this month. It is part of a Future Volkswagen program.

This includes plans to reduce Germany-wide vehicle output by 730k units by 2028. They also plan to slash 35k jobs ‘in a socially responsible manner.’

German industrial leaders and Russian President Vladimir Putin issued a warning almost four years ago.

They highlighted the consequences of cutting Europe off from Russian gas. Putin warned that the ‘suicidal’ decision would undermine Europe’s global economic competitiveness.

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