First Shutdown for VW China Volkswagen Ends Production in Nanjing

Source: dpa | Translated by AI 1 min Reading Time

The dpa reports that Volkswagen and its Chinese partner Saic are closing their joint plant in the Chinese metropolis of Nanjing ...

Closure premiere! In Nanjing, Saic and Volkswagen operate a joint plant. However, the trend toward electric cars now makes it inevitable that the plant will soon have to close its doors ...(Image: Volkswagen / Saic)
Closure premiere! In Nanjing, Saic and Volkswagen operate a joint plant. However, the trend toward electric cars now makes it inevitable that the plant will soon have to close its doors ...
(Image: Volkswagen / Saic)

The joint plant of the state-owned company Saic and VW in the eastern Chinese province of Nanjing has ceased production, as indicated by a statement from Wolfsburg. The group is reportedly accelerating its shift to electric vehicles. For this strategy, the production network is being optimized. Furthermore, the final closure will gradually take place in the second half of 2025, with the remaining production being relocated to the nearby Yizheng plant. This step marks the first complete closure of a VW plant in China. The decision is not without reason, as VW had already been examining the Nanjing plant for some time. Its location in the city center makes it unsuitable for expansion or conversion for electromobility. The joint venture Shanghai Volkswagen had opened the factory in 2008, producing several hundred thousand vehicles per year, such as the Passat and the Skoda Superb. Now it’s over, as VW states that internal combustion vehicles are no longer profitable due to the aggressive price war affecting the company. However, others noted a turnaround that brought the group a slight increase of 2.8 percent in the second quarter.

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