Foreign media: “Measures Following Decline in Internal Combustion Engine Vehicles Demand”
According to reports, German automaker Volkswagen is considering shutting down one of its factories in China due to a decline in demand for internal combustion engine vehicles. Bloomberg reported on the 18th (local time) that the joint venture between Volkswagen and local company SAIC is preparing to halt operations at a factory in Nanjing, Jiangsu province next year.
Established in 1985, the factory is capable of producing 360,000 vehicles annually and is used for producing Passat and Skoda models. The joint venture had previously stopped production at one factory in China two years ago and reduced production at another. There are also discussions about the possible closure of the Skoda production plant in Ningbo, Zhejiang province.
Volkswagen China stated that all joint venture factories are operating normally according to market demand and forecasts, and they are gradually transitioning vehicle production and component factories in line with the shift to electric vehicles.
Bloomberg pointed out that Volkswagen is facing a decline in demand in the largest automotive market, China, and that its existing internal combustion engine production facilities are excessively surplus amid the rapid transition to electrification.