Volkswagen plans to halt production at joint plant in China Publication in CHAT: Russia Volkswagen adjusts production in China German auto giant Volkswagen has decided to carry out a large-scale restructuring of its production in China, the world's largest automobile market. According to internal information, the company plans to stop producing cars with internal combustion engines at one of its plants in China, writes the automobile portal 32CARS.RU. Excess capacity and a change in priorities The reason for this decision was the problem of excess production capacity. In cooperation with long-standing partner SAIC Motor, Volkswagen intends to gradually transfer production of the popular Passat family from its plant in Nanjing to a nearby plant in Jiangsu Province. However, the exact time of this transformation has not yet been determined. Personnel and brands: new strategies The reduction in production will inevitably raise questions about the fate of the employees of the Nanjing plant. Some workers will be asked to transfer to another SAIC-VW plant in Yizhen, where the best-selling sedan of the Lavida brand is produced. In parallel with these changes, Volkswagen and SAIC are planning to revive sales of the Skoda brand, which has lost significant ground on the Chinese market in recent years. In 2018, Skoda accounted for 17% of the total sales of the SAIC-VW joint venture, but this figure has now fallen to 1%. Challenges and adaptation Although neither Volkswagen nor SAIC have officially confirmed these changes, the situation clearly indicates that the German carmaker is facing serious challenges in the Chinese market. The decline in market share is forcing the company to look for new ways to improve its competitiveness. The partnership with SAIC and other players such as Xpeng is aimed at creating more attractive models for Chinese consumers. It was previously reported that the carmaker Volkswagen is considering laying off 15,000 employees in 2024 due to the planned closure of factories. Source link Source link
