{"id":2703,"date":"2024-09-19T10:59:00","date_gmt":"2024-09-19T10:59:00","guid":{"rendered":"https:\/\/skytoprover.com\/?p=2703"},"modified":"2024-09-19T14:31:56","modified_gmt":"2024-09-19T14:31:56","slug":"vw-and-saic-to-end-operations-at-chinese-plant-as-sales-dwindle","status":"publish","type":"post","link":"https:\/\/skytoprover.com\/index.php\/2024\/09\/19\/vw-and-saic-to-end-operations-at-chinese-plant-as-sales-dwindle\/","title":{"rendered":"VW And SAIC To End Operations At Chinese Plant As Sales Dwindle"},"content":{"rendered":"<div><img width=\"1024\" height=\"576\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" class=\"attachment-large size-large wp-post-image lazyload\" alt=\"\" style=\"margin-bottom: 15px\" loading=\"lazy\" data-src=\"https:\/\/skytoprover.com\/wp-content\/uploads\/2024\/09\/VW-China-1024x576-1.jpg\"><\/div>\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-5 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\">\n<ul>\n<li>The site has the capacity to produce as many as 360,000 vehicles annually.<\/li>\n<li>The conglomerate currently operates 39 plants across the country.<\/li>\n<li>Some workers could be told to relocate to work at SAIC-VW\u2019s Yizheng factory.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p>Volkswagen and its <a href=\"https:\/\/www.carscoops.com\/tag\/china\/\">Chinese<\/a> joint venture partner SAIC Motor Corp plan to shut a factory in Nanjing as early as next year due to declining local sales of some combustion-powered vehicles and the rising popularity of EVs.<\/p>\n<div id=\"6a782b01-facb-45f3-a88f-ddf1b1f97657\" class=\"_ap_apex_ad\"><\/div>\n<div id=\"4d84e4c9-9937-4f84-82c0-c94544ee6f2a\" class=\"_ap_apex_ad\"> <\/div>\n<p> var adpushup = window.adpushup  = window.adpushup || {que:[]};<br \/>\n         adpushup.que.push(function() {<br \/>\n             if (adpushup.config.platform !== &#8220;DESKTOP&#8221;){<br \/>\n    adpushup.triggerAd(&#8220;4d84e4c9-9937-4f84-82c0-c94544ee6f2a&#8221;);<br \/>\n             }<br \/>\nelse{<\/p>\n<p>     adpushup.triggerAd(&#8220;6a782b01-facb-45f3-a88f-ddf1b1f97657&#8221;);<br \/>\n}         });<\/p>\n<p>The plant handles the production of the VW Passat as well as several Skoda models and has an annual capacity of as many as 360,000 vehicles. Unnamed sources say the brand is conducting a strategy review of Skoda due to a drop in sales. A second plant that builds <a href=\"https:\/\/www.carscoops.com\/2022\/12\/skoda-considering-exit-from-china-due-to-strong-competition\/\">Skoda models<\/a>, located in the city of Ningbo in the Zhejiang province, has also been idled for months and may also be closed.<\/p>\n<p><strong>Read: <a href=\"https:\/\/www.carscoops.com\/2024\/09\/vw-could-shut-down-two-german-factories-but-union-vows-to-fiercely-oppose-any-such-plans\/\">VW Faces Union Fury Over Proposed Factory Closures<\/a><\/strong><\/p>\n<p>When quizzed about the reported closure, VW China said it is \u201ctransforming vehicle production and the components plants step by step,\u201d but added \u201call SAIC Volkswagen factories are operating normally according to the market requirements and our forecast.\u201d<\/p>\n<div id=\"taboola-mid-article\"><\/div>\n<p>  window._taboola = window._taboola || [];<br \/>\n  _taboola.push({<br \/>\n    mode: &#8216;thumbnails-a-mid&#8217;,<br \/>\n    container: &#8216;taboola-mid-article&#8217;,<br \/>\n    placement: &#8216;Mid Article&#8217;,<br \/>\n    target_type: &#8216;mix&#8217;<br \/>\n  });<\/p>\n<div id=\"taboola-mid-article-thumbnails-organic\"><\/div>\n<p>  window._taboola = window._taboola || [];<br \/>\n  _taboola.push({<br \/>\n    mode: &#8216;thumbnails-oc-2&#215;1&#8217;,<br \/>\n    container: &#8216;taboola-mid-article-thumbnails-organic&#8217;,<br \/>\n    placement: &#8216;Mid Article Thumbnails Organic&#8217;,<br \/>\n    target_type: &#8216;mix&#8217;<br \/>\n  });<\/p>\n<p>The <a href=\"https:\/\/www.carscoops.com\/tag\/vw\/\">German automotive juggernaut<\/a> employs more than 90,000 people in China and operates 39 factories. However, production at these sites is down more than a quarter from a peak before the COVID-19 pandemic and down roughly half from 2015. <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-09-18\/vw-and-china-partner-saic-set-to-close-car-plant-as-sales-shrink?utm_medium=social&amp;utm_campaign=socialflow-organic&amp;cmpid=socialflow-facebook-business&amp;utm_content=business&amp;utm_source=facebook\">Bloomberg<\/a> adds that factory utilization at the SAIC-VW joint venture stands at just 58% of a possible 2.1 million units.<\/p>\n<p>Speaking with <a href=\"https:\/\/www.reuters.com\/business\/autos-transportation\/volkswagen-jv-partner-saic-plan-close-china-plant-bloomberg-reports-2024-09-18\/\">Reuters<\/a>, a source says the joint venture is yet to decide if it will completely close the factory or if it will try to sell it. Some of the workers from the site could be told to relocate to work at SAIC-VW\u2019s Yizheng site, which currently handles production of its Lavida models.<\/p>\n<p>        <a href=\"https:\/\/www.carscoops.com\/wp-content\/uploads\/2023\/11\/VW-ID.7-Vizzion-China-2.jpg\" data-type=\"inarticle-image-block\"> <\/p>\n<figure class=\"wp-block-image size-large\">\n<p>                    <img loading=\"lazy\" class=\"lazy \" src=\"\" alt=\" VW And SAIC To End Operations At Chinese Plant As Sales Dwindle\" width=\"2000\" height=\"1331\" data-src=\"https:\/\/www.carscoops.com\/wp-content\/uploads\/2023\/11\/VW-ID.7-Vizzion-China-2-1024x681.jpg\" data-type=\"inarticle-image\" \/><\/p>\n<\/figure>\n<p>        <\/a>  <\/p>\n<p>This wouldn\u2019t be the first time SAIC-VW has stopped building vehicles at one of its Chinese plants. In 2022, it moved production from its No. 1 Auto Plant in Shanghai\u2019s Anting manufacturing zone to a plant in Yizheng.<\/p>\n<p>It\u2019s not just one or two of VW\u2019s Chinese factories that could be shuttered. The carmaker is also pondering the possibility of closing two factories in Germany in an effort to save money. This plan has come under fierce opposition from the powerful labor union that represents many of VW\u2019s workers across its home market.<\/p>\n<div id=\"e7c4c913-3924-4b2d-9279-6c00984dd130\" class=\"_ap_apex_ad\"> <\/div>\n<div id=\"5646c171-cb6e-4e2c-8440-49013ca72758\" class=\"_ap_apex_ad\"> <\/div>\n<p> var adpushup = window.adpushup  = window.adpushup || {que:[]};<br \/>\n         adpushup.que.push(function() {<br \/>\n             if (adpushup.config.platform !== &#8220;DESKTOP&#8221;){<br \/>\n    adpushup.triggerAd(&#8220;5646c171-cb6e-4e2c-8440-49013ca72758&#8221;);<br \/>\n             }<br \/>\nelse{<\/p>\n<p>     adpushup.triggerAd(&#8220;e7c4c913-3924-4b2d-9279-6c00984dd130&#8221;);<br \/>\n}         });<\/p>\n<p>        <a href=\"https:\/\/www.carscoops.com\/wp-content\/uploads\/2019\/11\/2020-Skoda-Kamiq-GT-China-spec-40.jpg\" data-type=\"inarticle-image-block\"> <\/p>\n<figure class=\"wp-block-image size-large\">\n<p>                    <img loading=\"lazy\" class=\"lazy \" src=\"\" alt=\" VW And SAIC To End Operations At Chinese Plant As Sales Dwindle\" width=\"1920\" height=\"1279\" data-src=\"https:\/\/www.carscoops.com\/wp-content\/uploads\/2019\/11\/2020-Skoda-Kamiq-GT-China-spec-40-1024x682.jpg\" data-type=\"inarticle-image\" \/><\/p>\n<\/figure>\n<p>        <\/a>  <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The site has the capacity to produce as many as 360,000 vehicles annually. The conglomerate currently operates 39 plants across the country. Some workers could be told to relocate to work at SAIC-VW\u2019s Yizheng factory. Volkswagen and its Chinese joint venture partner SAIC Motor Corp plan to shut a factory in Nanjing as early as [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2705,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[15],"tags":[],"_links":{"self":[{"href":"https:\/\/skytoprover.com\/index.php\/wp-json\/wp\/v2\/posts\/2703"}],"collection":[{"href":"https:\/\/skytoprover.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/skytoprover.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/skytoprover.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/skytoprover.com\/index.php\/wp-json\/wp\/v2\/comments?post=2703"}],"version-history":[{"count":2,"href":"https:\/\/skytoprover.com\/index.php\/wp-json\/wp\/v2\/posts\/2703\/revisions"}],"predecessor-version":[{"id":2706,"href":"https:\/\/skytoprover.com\/index.php\/wp-json\/wp\/v2\/posts\/2703\/revisions\/2706"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/skytoprover.com\/index.php\/wp-json\/wp\/v2\/media\/2705"}],"wp:attachment":[{"href":"https:\/\/skytoprover.com\/index.php\/wp-json\/wp\/v2\/media?parent=2703"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/skytoprover.com\/index.php\/wp-json\/wp\/v2\/categories?post=2703"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/skytoprover.com\/index.php\/wp-json\/wp\/v2\/tags?post=2703"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}