SAIC Volkswagen’s Response to Nanjing Plant Closure Reports

HONG KONG (Reuters) – SAIC Volkswagen (ETR:VOWG_p) responded to reports regarding the closure of its Nanjing plant, stating on Saturday that adjusting its production base is “normal and necessary,” as reported by Chinese media outlet Yicai.

According to Reuters, Germany’s Volkswagen plans to halt production at one of its combustion engine car plants in China, highlighting the challenges automakers face in managing overcapacity in the world’s largest car market.

While some reports speculated about the closure of the joint venture’s Nanjing plant, a source informed Reuters that a decision to sell or close the plant had not yet been made.

When asked about the Nanjing plant’s future, SAIC Volkswagen emphasized that “based on corporate strategic planning and market trends, adjustments in the production base are normal business behaviors,” according to Yicai.

Yicai also noted that production at the Nanjing plant remains normal, but the company plans to introduce several new products in the future, including gasoline and new energy vehicles, necessitating adjustments to its production base.

As of now, the company has not responded to Reuters’ request for additional comments, and Volkswagen indicated on Wednesday that it does not comment on speculation, while SAIC could not be reached for further commentary.