Volkswagen and its Chinese joint venture partner SAIC have closed their vehicle production plant in Nanjing, marking the first time the German automaker has shuttered a facility in China. The site, which primarily manufactured internal combustion engine (ICE) models such as the VW Passat and Skoda Superb, has ceased operations, with production expected to shift to SAIC-Volkswagen’s nearby Yizheng facility.
Rumours of the plant’s closure surfaced last year, and Volkswagen has now confirmed the decision to German outlet Automobilwoche, following an initial report by Handelsblatt. Unlike previous adjustments such as VW’s exit from the controversial Xinjiang facility—which was sold rather than closed—the Nanjing site is being fully decommissioned, with discussions underway about returning the land to local authorities.
Opened in 2008, the Nanjing plant had an annual production capacity of 360,000 vehicles but was reportedly operating well below this figure in recent years. According to industry sources cited by Handelsblatt, the site’s location near Nanjing’s urban core posed logistical challenges and limited opportunities for expansion or conversion to electric vehicle production, contributing to its closure.
The plant’s closure comes as Volkswagen reevaluates its manufacturing footprint in China amid changing market dynamics and excess production capacity. The company still operates around 40 vehicle and component factories across the country, more than enough to meet current demand. The transfer of Passat and Superb production to Yizheng, about 70 kilometres from Nanjing, is expected to ensure continuity of these models.
Volkswagen has not confirmed how many of the Nanjing plant’s approximately 2,500 employees will be relocated to Yizheng or offered roles elsewhere. However, reports suggest that some workers could find employment with emerging domestic brands, which continue to grow and seek experienced talent.