Volkswagen is completely closing a factory in China for the first time in its history. This concerns the plant in Nanjing, which has been operating since 2008 in cooperation with the Chinese company SAIC.
Production will be suspended until the end of 2025, and the process of winding down operations has already begun. This decision came as a surprise to the industry, given the scale of Volkswagen's presence in the Chinese market.
The Nanjing plant produced Volkswagen Passat and Skoda Superb models, but in recent years production volumes have decreased significantly. The main reasons are outdated infrastructure and an inconvenient location in the city center, which makes it difficult to modernize for the production of electric vehicles. Refitting would require significant investments, which the company considered economically impractical.
The decision to close is also due to increasing competition from Chinese automakers, who are actively developing the electric vehicle segment.
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