Volkswagen will close its Dresden factory on December 16, marking its first shutdown of a production plant in Germany since its founding 88 years ago. The factory, opened just over two decades ago, has produced fewer than 200,000 vehicles annually since 2022. After production ends, the site will be leased to Dresden University of Technology and converted into a research campus. The closure is part of Volkswagen’s restructuring, which includes cutting over 35,000 jobs globally. Facing weak sales in China and soft European demand, Volkswagen is planning 166 billion euros ($177 billion) in spending over five years to fund its shift toward electric vehicles.