VW Proposes $35,000 Relocation Bonus for Employees but Faces Criticism | Carscoops

      The Transparent Factory will cease production of the ID.3 and transition to a research-focused role, as Volkswagen provides relocation bonuses and extends job security guarantees.

      Volkswagen is halting ID.3 production while maintaining 155 jobs in Dresden. The Transparent Factory will serve as a new innovation center in collaboration with TU Dresden. Employees are being offered €30,000 bonuses to move to Wolfsburg.

      Later this month, Volkswagen will conclude the production of the all-electric ID.3 at its Dresden facility, known for its glass architecture. This will mark the first time since its inception that the factory will have no vehicles in production.

      Although VW initially anticipated retaining just 135 positions at the location, it has decided to keep more jobs than expected. The company is also providing significant relocation incentives for employees willing to transfer to its headquarters in Wolfsburg.

      How Many Will Stay?

      VW initially planned to keep only 135 roles as part of its production halt, but earlier this year, VW brand leader Thomas Schafer and group works council chairwoman Daniela Cavallo visited the site to confirm that 155 employees would remain. Currently, the facility employs about 250 individuals.

      To motivate some workers to leave, VW has announced a €30,000 (approximately $35,000) signing bonus for those who relocate to Wolfsburg, which is about 300 kilometers (186 miles) from Dresden, as reported by the German publication Handelsblatt.

      Despite the appeal of the bonus, one participant at a recent staff meeting mentioned that the announcement was met with disapproval from attendees.

      What’s Next for the Transparent Factory?

      Although the Transparent Factory will no longer produce VW vehicles, it is set to become an innovation campus in partnership with the Dresden University of Technology (TU Dresden).

      According to VW Saxony managing director Thomas Edig, this initiative allows the facility to aspire to become "the Stanford of the East."

      The campus will concentrate on various advanced technological areas, including artificial intelligence, microelectronics, chip design, materials science, robotics, and circular economy technologies. TU Dresden will occupy about half of the Transparent Factory, while VW will facilitate the partnership through research agreements.

      As stated by Handelsblatt, VW employees in Dresden are assured job security through 2030. Starting in early 2026, they will also be incorporated into VW’s collective bargaining agreement, which is expected to lead to elevated wages and enhanced employment conditions.