Volkswagen is closing one of its oldest plants in China
Volkswagen has confirmed the closure of its plant in Nanjing, China, which operated under a joint venture with SAIC. The plant, with a design capacity of 360,000 cars per year, produced VW Passat sedans and Skoda models for 17 years.
Here's What We Know
The information first appeared in the German press, after which it was officially confirmed by Volkswagen. The company said that the SVW plant in Nanjing has ended production, but did not specify the exact timing of the shutdown. According to Handelsblatt, the company will cease operations gradually in the second half of 2025.
The decision did not come as a surprise. In September last year, the media reported on plans to close the plant amid a sharp drop in sales of cars with internal combustion engines on the local market. It was exactly such models that were produced in Nanjing.
Volkswagen also noted that some of the plants of its joint venture with SAIC have already been converted to produce electric cars and components for them, but did not specify whether the Nanjing plant would be among them.
In China, Volkswagen operates 39 plants and employs more than 90,000 people. However, since the COVID-19 pandemic, the combined workload of the plants run by the JV with SAIC is only 58 per cent of the potential 2.1 million vehicles per year.
Source: Handelsblatt
