The collapse of socialist-planned economies in Eastern Europe offers an unexpected direction for the expansion of the Wolfsburg company. Immediately after the Wall comes down in November 1989, Volkswagen enters into negotiations with the automobile industry in Saxony. Together with the "IFA-Kombinat Personenkraftwagen" Volkswagen forms a planning company in December 1989, to prepare for the development and production of an internationally competitive vehicle. In anticipation of the large demand for western passenger cars Volkswagen invests in expanding production in Mosel, Chemnitz and Eisenach as their technical standards and capacities fall short of the requirements of efficient mass production. A modern assembly plant is built in Mosel with a capacity of 250,000 vehicles a year. The factory in Chemnitz supplies engines and cylinder heads are manufactured in Eisenach.
Zwickau-Mosel, Germany Chemnitz, Germany Eisenach, Germany