SAIC Volkswagen's Plan to Adjust Production Bases in China
TapTechNews September 21, it was reported by Bloomberg yesterday that SAIC Volkswagen plans to close its Chinese factories, with the Nanjing factory being the first to bear the brunt, mainly producing Passat and Skoda models.
In response to the rumors in the market that SAIC Volkswagen's Nanjing factory will be closed, SAIC Volkswagen told China Business News: The adjustment of the production base is a necessary business behavior.
Based on the corporate strategic plan and responding to market trends, the enterprise makes adjustments to the production base, which is a normal and necessary business behavior. This adjustment is not only an active response to the current trend but also an active planning and investment for future development.
SAIC Volkswagen explained that at present, all production work in the Nanjing factory is operating normally. At present, the production capacity of all Passat models is sufficient, and production and sales are all normal. Only based on market demand and product planning, SAIC Volkswagen has many new products to be launched in the future, including new fuel products and new energy products. Based on the new product portfolio, the production base also needs to make corresponding plans.
According to TapTechNews' previous report, Fu Qiang, the executive deputy general manager of SAIC Volkswagen's sales and marketing, said at the beginning of this month that he is not optimistic about some joint-venture enterprises choosing to lie down. He believes that once you lie down, you will never be able to stand up again, and by then the price to come back is much more than the price of not lying down and continuing to stand at the beginning. The market has already forgotten this brand. So SAIC Volkswagen's choice is very firm. There will be a strategy and gameplay in the transition period, and some interests have been temporarily sacrificed, but what is won is the battlefield in the future.
In August this year, SAIC Group's new energy vehicle sales exceeded 86,000 units, and the cumulative sales of new energy vehicles from January to August was 619,000 units, an increase of about 11% year-on-year.
Related Reading:
It is reported that SAIC Volkswagen will close the Nanjing factory next year, which was previously used to produce Passat and other models.