by ID.3 Production Halt in Dresden
By the end of this month, the Volkswagen Group will cease production of the fully electric ID.3 car at its site in Dresden, known as the ‘Transparent Factory’. This unique enterprise, famous for its floor-to-ceiling glass walls, will be left without a single car on its assembly line for the first time since its opening.
Staff Plans and Relocation Incentives
Despite the production halt, Volkswagen plans to retain more jobs at the facility than initially anticipated. The company is also offering a generous financial reward to employees who agree to relocate to the headquarters in Wolfsburg.
Initially, as part of the production cessation plan, the company expected to keep only 135 workers. However, earlier this year, VW brand chief Thomas Schäfer and the head of the general works council, Daniela Cavallo, visited the factory and announced that 155 employees would keep their jobs. Currently, about 250 people work at the plant.
To encourage some employees to relocate, Volkswagen offered a bonus of 30,000 euros (approximately $35,000 at the current exchange rate) to those willing to move to Wolfsburg, which is located about 300 kilometers from Dresden.
However, as reported, during a recent staff meeting, the announcement of this bonus was met with whistles and dissatisfaction from those present.
The Future of the Transparent Factory
Although the factory will no longer produce Volkswagen models, it will become home to a new innovation campus. This facility is being created in partnership with the Dresden University of Technology.
VW Saxony Managing Director Thomas Ederig noted that this gives the site “a chance to become the Stanford of the East.”
The campus will focus on a range of high-tech fields, including artificial intelligence, microelectronics, chip design, materials science, robotics, and circular economy technologies. The Dresden University of Technology will lease approximately half of the Transparent Factory, and Volkswagen will support the collaboration through research contracts.
Guarantees for Employees
Volkswagen employees in Dresden have job security guarantees until 2030. Starting from early 2026, they will also be covered by Volkswagen’s collective agreement, which is expected to ensure higher wages and improved working conditions.
The transformation of the iconic car factory into an innovation hub together with an academic partner reflects a broader trend in the automotive industry, where traditional manufacturing capacities are adapting to the era of electrification and digitalization. The decision to retain more employees than planned and invest in the facility’s future may be an attempt to mitigate the social consequences of structural changes. However, the employees’ reaction to the relocation bonus indicates the complexity of such transitions for workforces, even with financial compensation. The success of the new initiative as the ‘Stanford of the East’ will largely depend on the actual research and innovation outcomes created within these walls.
