Volkswagen announced that it plans to establish a research hub at its Transparent Factory in Dresden, Germany. The company noted that this realignment will phase out vehicle production at the site by the end of the year — marking the automaker’s first plant closure in Germany, according to the New York Times.

Transparent Factory Dresden, famous for its glass walls, opened in 2001 and began producing Volkswagen’s ID.3 electric vehicles in 2021. The company plans to dismantle the ID.3 production line in January, with the first joint research projects with the Technical University of Dresden beginning in mid-2026 and regular operations scheduled for 2027.