Volkswagen Closes Vehicle Production Plant in Dresden: What's Next? [Yahoo! Finance]
MAZDA MOTOR CORP UNSP/ADR (MZDAY)
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Source: Yahoo! Finance
costs.The company has struggled under competitive pressure in markets such as China, where local brands are producing vehicles at lower costs. For the first time in its 88-year history, Volkswagen is shutting a vehicle production plant in Germany. The decision will result in 230 job losses. The Dresden plant, commonly referred to as the ‘Transparent Factory' because of its glass design, began operations in 2001. The plant most recently produced the ID.3 battery-electric vehicle and, overall, manufactured fewer than 200,000 vehicles. Production of the ID.3 was scheduled to be discontinued in 2028, but the model was granted a reprieve, with EV production set to continue at the company's Zwickau plant. However, weaker demand, software glitches and quality issues have posed significant challenges for the company as it seeks to remain competitive in the market. It also faces pressure from China and Europe, where the demand for EVs is declining due to cash flow pressure. The U.S tarif
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