Volkswagen is in crisis. The debt is so enormous that, according to the financial director, the brand has two, maybe three years to reverse the trend. Now the first factory is closing.
Volkswagen lacks money. In fact, the brand is in such a big economic crisis that the management is now closing the first of probably a number of factories.
This is written by the financial media Bloomberg .
Specifically, Volkswagen is pulling the plug on the factory in Nanjing, which in a joint venture with the state-owned SAIC, which i.a. owns MG, builds Passat and a number of Skoda models.
Volkswagen was the first car brand to establish itself in China. Which actually also meant that a model like the Golf II was in production in various variations right up to 2013.
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The factory in Nanjing, which according to Bloomberg is being shut down, has an annual capacity of 360,000 cars. Right now, however, only 58 percent of the factory's capacity is being utilized. On the other hand, Volkswagen doesn't really want to comment on the media's information.
– All SAIC Volkswagen factories operate normally according to market requirements and our forecast, reads a comment.
However, it is not just Volkswagen that is suffering in China. Several of the group's brands do this. Audi in particular has had sharp competition from the Chinese's own brands.
Back in December 2023, it also emerged that the brand is now seeking help from a Chinese brand that will supply the technology for a brand new model. Read more about it here .
While Audi and Volkswagen are trying to hold on to Chinese market shares, other brands are fleeing the communist dictatorship. For example, Aiways hopes to restart the entire company by moving everything but production to Europe.
Read more exciting news from and about the world of cars right here!
