Volkswagen Phaeton Plant to Close as Part of Cost-Cutting Plan

Volkswagen announced it will close its Dresden manufacturing plant, a small and fancy facility where the automaker builds its flagship Phaeton sedan. The closure, slated to occur next March, comes at a time when the automaker is cutting back to cover costs associated with its diesel emissions scandal.

However, the automaker points out that during the plant’s closure, it will be converted to produce the new all-electric Phaeton, which is set to debut in 2019. Volkswagen says it will need a year to retool the plant in time for the sedan’s launch. As previously reported, the electric Phaeton will ride on Volkswagen Group’s new Modular Electric Kit (MEB) platform, which will also underpin the Porsche Mission E and a number of electrified Audi models.

In the meantime, the automaker will need to figure out where to place the 300 employees who build the current Phaeton. Reuters reports most employees will have to commute to VW’s Zwickau plant 75 miles away from Dresden where the automaker builds the Golf and Passat. There are also negotiations about sending some employees to temporarily work at a Porsche site until Dresden is reopened.

The Phaeton first went on sale back in 2002, but has never been a big seller. Today, the Dresden plant, which showcases glass walls, parquet floors, and uniformed employees, only produces eight units daily due to slow demand.

Source: Reuters

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