SAIC Volkswagen States Plant Base Adjustment is “Necessary” – Reuters

HONG KONG (Reuters) – In response to speculation about the potential closure of its Nanjing plant, SAIC Volkswagen has stated that adjusting its production base is a "normal and necessary" part of its operations, according to the Chinese media outlet Yicai.

Reports emerged earlier this week indicating that Germany’s Volkswagen is considering halting production at one of its combustion engine facilities in China, reflecting the challenges automakers face in managing excess capacity within the largest automotive market in the world.

While there have been claims that the joint venture between Volkswagen and Chinese partner SAIC Motor would shut down the Nanjing plant, a source with knowledge of the situation clarified that no decision has been made regarding its sale or closure.

When questioned about the future of the Nanjing plant, SAIC Volkswagen emphasized that adjustments to its production base align with corporate strategic planning and market trends. They assured that production at the plant is currently operating as usual and mentioned that as they prepare to launch a range of new products, including traditional gasoline and new energy vehicles, adapting their production infrastructure is essential.

The company did not provide immediate comments when reached by Reuters on Saturday. Previously, Volkswagen has refrained from discussing rumors, and attempts to contact SAIC for further remarks were unsuccessful.