Volkswagen and SAIC Motor to Cease Joint Production in Nanjing

In a significant move, Volkswagen Group alongside its Chinese partner, SAIC Motor Corp. Ltd., is reportedly set to shut down their joint production facility in Nanjing, China. This decision, as reported by Handelsblatt, marks a pivotal shift in the automaker's strategy in the region.

Behind the Decision: Location and Logistics

The Nanjing plant's location, situated between the Jiangning Economic and Technological Development Zone and the city, has been cited as a disadvantage. Production has already been halted, with plans to relocate limited manufacturing operations to Yizheng, another city within the area.

A Broader Strategy: Volkswagen's Production Adjustments in China

This closure is part of Volkswagen's broader strategy to adjust its production footprint in China. The German automaker had previously scaled back operations near Shanghai in 2022. Earlier this year, the company's CEO hinted at further adjustments, underscoring the dynamic nature of the automotive market in China.