Volkswagen to end production at Dresden plant, convert into tech research hub

Volkswagen (VWAGY) plans to end vehicle production at its Dresden plant, which opened in 2001, and convert it into a research hub for tech such as AI, robotics, and chip design. Together with the Free State of Saxony and the Dresden University of Technology, the company plans to establish an innovation campus at the site starting next year, focusing on key technology fields including artificial intelligence, robotics, microelectronics, and chip design. The parties involved have signed a corresponding letter of intent. This agreement stipulates, among other things, that Volkswagen will provide the Dresden University of Technology with extensive space within the factory, which opened in 2002. In total, both partners will invest more than EUR 50M over the next seven years in research, technology development, and four new endowed professorships. Furthermore, the factory will remain a delivery and research center and a Volkswagen experience center. Thomas Schafer, CEO of the Volkswagen brand: “We did not take the decision to end vehicle production at the Transparent Factory after more than 20 years lightly. From an economic perspective, however, it was absolutely necessary. It is all the more important that we were able to develop a viable future concept for the site in recent months – with a clear perspective for the coming years. Together with TU Dresden, we are transforming the factory into a place where mobility, technology, and science converge.”