Volkswagen is closing a plant in Germany for the first time in 88 years.

German automaker Volkswagen will cease production at its Dresden plant on Tuesday. This marks the first time in the automaker's 88-year history that the company has closed a production site in Germany, according to the British newspaper Financial Times.

The decision was made amid deteriorating market conditions and rising costs. Volkswagen is facing rising production costs and declining sales in its key markets – China and the European Union. The sharp decline in sales in the US, due to tariffs imposed by the Trump administration, has placed additional pressure on the company's performance.



The closure of the Dresden plant is part of a broader restructuring and capacity reduction program at Volkswagen in Germany. As part of these measures, the company previously announced plans to cut up to 35 jobs across its German operations.

The Dresden plant, known as the "Glass Manufaktur," has long been considered a symbol of Volkswagen's engineering and technological prowess. Its closure highlights the scale of the challenges facing Europe's largest automaker amid the global slowdown. economics, escalating trade conflicts and the industry's shift to electric vehicles.