Volkswagen Plans to Sell Major Car Factory in China

nanjing, china - Volkswagen is considering selling its underutilized car factory in Nanjing, China, which may be the first of several sales in the country due to overcapacity concerns.

Volkswagen is considering selling its car factory in Nanjing, China, as insiders report that the facility is operating below its capacity. The factory, a joint venture established in 2008 with Chinese company SAIC, has the capacity to produce 360,000 cars annually, primarily Volkswagen Passats and Škoda's.

Reports suggest that Volkswagen may divest more Chinese factories due to overcapacity issues. Factories producing Škoda models are particularly at risk, as the brand's sales are reportedly declining. Volkswagen has not provided a formal response on these speculations.

The automotive company is facing challenges with lower car sales in Europe and China, particularly in the electric vehicle segment. Additionally, Volkswagen is facing competition from Chinese electric car manufacturers like BYD.

Earlier reports indicated that Volkswagen was considering closing a factory near Shanghai, though recent information suggests the company prefers to sell the facility, with closure remaining a possibility.