Volkswagen is closing its car manufacturing plant in Dresden, Germany, which will be transformed into a hub for the development of artificial intelligence (AI), robotics and chip design research. The factory, which opened in 2001, is the first local factory to be closed by VW in 88 years.
VW's move is not surprising because Western automakers are currently facing a crisis of not being able to compete with electric vehicles (EVs) from China. Lack of software expertise and chip usage have caused them to now be caught up with innovations introduced by competitors from China. Among the issues VW faces are the vehicle software that is not smooth, the lack of innovative functions and the much more expensive prices of Chinese EVs.
VW has become another automotive company that is now changing direction into the AI arena. Yesterday we reported that Ford is renovating its EV battery production plant to produce battery packs for industrial needs, especially AI data centers.