On December 16, 2025, Volkswagen stopped vehicle production at its Dresden plant in Germany for the first time in 88 years. This closure results from weak global demand and high US tariffs. The decline of German automakers creates a serious ripple effect for Taiwan’s screw industry, which supplies many automotive fasteners to Germany.

Statistics from the Taiwan Industrial Fasteners Institute show Taiwan's fastener exports to Germany in November dropped by 17.5% year on year. Although Germany remains Taiwan's second-largest export market, orders continue to vanish as German car production slows down.

The closure of German production lines means fewer orders for the Taiwanese firms that supply them. Because these car plants are moving away from manufacturing, Taiwan’s automotive fastener industry faces a shrinking market and a difficult future in Europe.