Volkswagen closes its factory in China

The German automaker Volkswagen is closing a factory in China. The company has already stopped its work, and in the second half of this year its activities will be completely stopped. This was reported by TASS with reference to the Handelsblatt newspaper.

We are talking about a joint venture between Volkswagen and the Chinese manufacturer SAIC, located in Nanjing. The plant was launched in 2008, and its maximum capacity was 360 thousand cars per year. Recently, the plant has been working with less intensity, producing Passat and Skoda Superb models.

Logistics problems are indicated as the reason for the closure of the plant: the enterprise is located in an industrial area near the city center, which makes it difficult to modernize it. Because of this, the conversion of the plant for the production of electric vehicles would be expensive and impractical, so it was decided to close production at this site.

The territory of the plant and its buildings will be returned to the ownership of the city authorities, and production will be transferred to the company's factory in nearby Yizheng.

Earlier, in 2022, the German concern took similar actions at its facility in the vicinity of Shanghai, but then the plant was not completely shut down.

The publication notes that the closure of the Nanjing plant reflects structural changes in the Chinese automotive market. The demand for cars with internal combustion engines is decreasing in the country, and Chinese companies are increasing the production of electric vehicles, which increases competition for German manufacturers.

Volkswagen sold less than 3 million vehicles in China last year, the lowest since 2012.