Volkswagen Shuts ID.3 Production, Dresden Plant Becomes Adidas Innovation Hub
Volkswagen is ending ID.3 production at its Dresden plant by late 2025. The site, known as the Gläserne Manufaktur, will then transform into an Adidas Campus focused on research and development. This marks a clear shift from manual labour to high-tech expertise in Saxony.
The decision comes as the company prioritises efficiency and profitability over traditional manufacturing. Meanwhile, Volkswagenâs stock closed the week at âŹ98.10, showing a slight daily rise of 0.95% despite broader market caution.
The Dresden factory, once a showcase for electric vehicle assembly, will stop building the ID.3 by the end of next year. No other automaker took over production, leaving Volkswagen to repurpose the facility entirely. From 2026, it will become a hub for innovation, aligning with the companyâs push toward cutting-edge development rather than mass production.
On the financial side, Volkswagenâs share price has dipped, with the Relative Strength Index (RSI) at 27.8âa level some analysts consider oversold. Yet, several major firms see potential. Berenberg has set a price target of âŹ113, JP Morgan âŹ110, and Goldman Sachs âŹ106, all above the current trading value. Investors are now watching whether the company can balance its cost-cutting drive with continued innovation.
The move reflects a broader strategy: Volkswagen is streamlining operations, dropping symbolic projects in favour of ruthless efficiency. The Dresden overhaul is part of this push, signalling a long-term bet on research over traditional manufacturing.
The Dresden plantâs transition to an Innovation Campus will complete by 2026. Analysts remain optimistic about Volkswagenâs stock, despite recent volatility. The companyâs next challenge will be proving it can cut costs without stifling the innovation it now claims as a priority.
