Volkswagen Drives Forward Reorientation of Dresden Plant
In a significant development, Volkswagen is pushing ahead with the reorientation of its smallest plant in Dresden, Germany. According to multiple sources familiar with the negotiations, the Technical University of Dresden (TU Dresden) is in talks to take over approximately half of the “Glass Manufactory” site, with plans to establish an innovation campus. Volkswagen would retain the remaining 50 percent of the space and redevelop it.
While no agreements have been formally fixed, all parties involved have confirmed the ongoing discussions. Ursula Staudinger, the rector of TU Dresden, confirmed the talks with Volkswagen and the Free State of Saxony, stating that the goal is to reach a conclusion by summer. Potential areas of cooperation include chip design, material research, artificial intelligence, autonomous driving and circular economy.
A Volkswagen spokesperson, while citing confidentiality, confirmed that the company is exploring “possible involvement in concepts of third parties.” The Dresden plant, which currently produces the ID.3 compact electric car, is set to cease vehicle production by the end of 2025, with the site’s annual output reaching 5,500 units last year.
A proposed contract model would have a duration of five years or more, with the TU Dresden potentially paying Volkswagen up to 3.5 million euros annually. In return, Volkswagen’s corporate research could award the university with contracts worth up to three million euros per year. Neither side has commented on the details of the proposed agreement.