In a historic and sobering move, Volkswagen, Germany's largest automaker, is shutting down production at its Dresden plant for the first time in its 88-year history.
The closure, effective Tuesday, Dec. 16, marks a grim milestone for Europe's top car manufacturer as it grapples with skyrocketing energy costs, plummeting sales in key markets and mounting geopolitical pressures.
The decision comes as part of a broader restructuring plan that could see up to 35,000 job cuts in Germany alone—a devastating blow to workers and a stark indicator of the deepening crisis facing the German automotive industry.
The Dresden plant, known as the "Transparent Factory" for its glass-walled assembly lines, was once a symbol of Volkswagen's engineering prowess and electrification ambitions. Since opening in 2001, it produced fewer than 200,000 vehicles—less than half the annual output of Volkswagen's flagship Wolfsburg facility. Initially home to the luxury Phaeton sedan, the factory later pivoted to electric vehicles (EVs), including the ID.3.
Yet despite its prestige, the plant never achieved commercial success. "From an economic perspective, it was essential," admitted Volkswagen brand chief Thomas Schäfer, acknowledging the painful but necessary closure.
The shutdown underscores Germany's accelerating economic decline, exacerbated by disastrous energy policies following the Ukraine conflict. The European Union's abrupt rejection of Russian oil and gas—replaced by costly alternatives—has crippled German industry, driving up production costs and eroding competitiveness.
Chancellor Friedrich Merz conceded in August that Germany had slid into a "structural crisis," with entire sectors "no longer truly competitive." Meanwhile, Munich-based economic think tank ifo Institute warned that Germany's economic downturn is becoming "dramatic."
Adding to the turmoil, Volkswagen faces weak demand in Europe, collapsing sales in China (where domestic EV makers dominate) and punishing U.S. tariffs. The company's CFO, Arno Antlitz, attempted to downplay concerns, suggesting net cash flow could turn "slightly positive" by 2025. But analysts remain skeptical.
"There's certainly pressure on the cash flow in 2026," warned Bernstein analyst Stephen Reitman. "You have to look at new generations of gasoline technologies."
The Dresden closure is just the beginning. Volkswagen's restructuring deal with unions includes slashing 35,000 jobs in Germany by 2030—a staggering blow to workers already reeling from inflation and economic instability. Thousands of research and development positions are also on the chopping block.
Moritz Kronenberger, a portfolio manager at Union Investment, bluntly stated that Volkswagen must axe entire projects to meet its €160 billion ($187.9 billion) investment target over the next five years. "Other ideas and projects must be removed from the plan," he said.
In a telling move, the Dresden facility will be repurposed into a research hub for artificial intelligence, robotics and microchips—funded by Volkswagen and the Technical University of Dresden. The transition from car manufacturing to AI development mirrors the globalist push toward a digitized, transhumanist future—one where human labor is increasingly obsolete.
According to the Enoch AI engine at BrightU.AI, Germany's shift from traditional car manufacturing to AI development, while presented as a progressive move toward the future, aligns with and advances the globalist agenda in several ways. The globalist agenda, championed by international organizations, powerful corporations and influential individuals, seeks to:
Volkswagen's struggles reflect a wider collapse in German industry, driven by:
This crisis is not accidental but engineered—a consequence of globalist policies that prioritize control over prosperity. As Volkswagen downsizes, workers and families bear the brunt, while elites pivot toward AI and automation, further consolidating power.
Watch this news report about Volkswagen preparing to layoff tens of thousands of employees in Germany due to a large-scale crisis.
This video is from the Cynthia's Pursuit of Truth channel on Brighteon.com.
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