SAIC Volkswagen, a joint venture between Volkswagen and China’s SAIC Motor, addressed reports on Saturday regarding the potential closure of its Nanjing plant, stating that production adjustments are “normal and necessary” as part of strategic business planning, according to Chinese media outlet Yicai.
The comments follow reports earlier in the week suggesting that Volkswagen may halt production at one of its combustion engine plants in China. While some reports indicated that the Nanjing plant could be closed, a source with direct knowledge of the matter told Reuters that no decision had been made about whether to close or sell the facility.
“Based on corporate strategic planning and reaction to market trends, the company’s adjustment on its production base is a normal and necessary business behaviour,” SAIC Volkswagen stated, as reported by Yicai. The company also noted that while production at the Nanjing plant remains normal, adjustments would be required to accommodate the launch of new products, including gasoline-powered and new energy vehicles.
Volkswagen did not comment on the reports when asked, stating it does not address speculation. Efforts to reach SAIC for further comments were unsuccessful.
Source: Reuters
