The Volkswagen Group and SAIC factory in Nankingin China, could close. There is no exact date for the end of production but, according to a source close to the company who remained anonymous, it could stop already in 2025 to assemble around 360,000 cars per year under the Volkswagen (including the Passat) and Skoda brands.
According to Automotive News Europe, this may not be the only plant of the Group to close in China, due to the slowdown in demand for cars with internal combustion engine on the local market. Final decisions, however, have yet to be made.
The official response
“All SAIC Volkswagen factories are operating normally according to market requirements and our forecasts,” Volkswagen China said in an e-mail response to questions from Bloomberg News.
Some numbers are reported by Automotive News Europe: production in 39 Chinese factories Volkswagen’s earnings last year remained more than a quarter below its pre-pandemic peak. Its share of operating profits from China operations fell 20% in 2023 to 2.62 billion euros and is about half as low as its 2015 peak.
What’s happening in Europe
While in China the Volkswagen Group must reorganize production, too tied to traditional fuel vehicles, because the demand for electric cars is high; in Europe the situation is the opposite. Agreements with unions have been broken in order to start layoffs from June 2025 in various plants.
The issue is still open and will not be easy to resolve. “Negotiations are necessary,” said Daniela Cavallo, president of the works council of the German company. “Otherwise, Volkswagen will be able to proceed with forced layoffs starting in the summer of 2025, but at the same time it would immediately have to face huge cost increases for all those who will remain.”
Source: it.motor1.com
