To this end, production of the Passat models will be moved from Nanjing to another nearby factory, a person familiar with the matter told Reuters on Wednesday. VW did not want to comment on the matter. SAIC was not immediately available for comment.
Some of the employees from Nanjing will also move to the other plant, the insider continued. However, there is no timetable yet. It is also unclear whether the factory in Nanjing will be closed or sold. Regardless of this, the two car manufacturers are considering boosting sales of the “Skoda” brand again. Skoda currently only accounts for one percent of the sales of the joint venture SAIC-VW. In 2017, the share was still 17 percent.
VW has been the leader in China for years
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The Bloomberg news agency was the first to report on planned plant closures. However, two other insiders stressed that the Ningbo plant, which is threatened with closure, is not up for discussion.
For many years, Volkswagen was the most successful vehicle manufacturer in China. However, due to growing domestic and foreign competition, its market share has recently declined. The Wolfsburg-based company is therefore working with partners such as SAIC and Xpeng on new models to regain lost ground. Last year, SAIC-VW sold 1.2 million vehicles, 43 percent fewer than in 2017. In the spring, insiders said that SAIC wanted to cut thousands of jobs in its joint ventures with Volkswagen and General Motors.
ePaper
Volkswagen to Shift Passat Production from Nanjing to Boost Efficiency
In a bid to revamp its production strategy and tackle declining sales in China, Volkswagen (VW) is planning to move the production of its Passat models from Nanjing to another nearby factory, according to a person familiar with the matter. The move is part of the German automaker’s efforts to regain its market share in the world’s largest automotive market.
Reasons Behind the Shift
VW’s decision to shift production comes amid growing competition from domestic and foreign players in China, which has led to a decline in its market share. According to reports, the automaker is working with its partners, including SAIC and Xpeng, to develop new models and regain lost ground. Last year, SAIC-VW sold 1.2 million vehicles, a significant drop of 43% from 2017.
Impact on Employees and Factory
The shift in production is expected to affect some employees at the Nanjing factory, with some of them likely to be transferred to the new plant. However, there is no clear timeline for the move, and it remains unclear whether the Nanjing factory will be closed or sold.
Boosting Skoda Sales
As part of its efforts to revamp its sales strategy, VW and SAIC are considering ways to boost sales of the Skoda brand, which currently accounts for only 1% of the joint venture’s sales. In 2017, Skoda’s market share was significantly higher at 17%.
VW’s Dominance in China
For many years, Volkswagen has been the leading vehicle manufacturer in China, but its market share has declined in recent times. The Wolfsburg-based company is working hard to regain its position in the market, and the shift in Passat production is a step in that direction.
No Plans to Close Ningbo Plant
Contrary to earlier reports, two insiders have clarified that the Ningbo plant, which was rumored to be threatened with closure, is not up for discussion.
The Road Ahead
Volkswagen’s decision to shift Passat production is a strategic move to boost efficiency and tackle declining sales in China. With the automaker working on new models and partnerships, the move is expected to have a positive impact on its market share in the country. As the German automaker navigates the challenges of the Chinese market, it remains to be seen how the shift in production will affect its performance in the long run.
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Volkswagen (VW)
Passat production
Nanjing factory
China automotive market
SAIC-VW
Ningbo plant
Volkswagen market share
China vehicle sales
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Volkswagen is shifting Passat production from Nanjing to a nearby factory to boost efficiency and tackle declining sales in China. Read more about the automaker’s strategy to regain its market share in the world’s largest automotive market.
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Volkswagen to Shift Passat Production from Nanjing to Boost Efficiency in China
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H1: Volkswagen to Shift Passat Production from Nanjing to Boost Efficiency
H2: VW has been the leader in China for years
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**Q: Why is Volkswagen shifting the production of Passat from Nanjing?**
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Volkswagen to Shift Passat Production from Nanjing to Boost Efficiency
In a bid to boost efficiency, Volkswagen is planning to shift the production of its Passat models from Nanjing to another nearby factory, a person familiar with the matter told Reuters on Wednesday. The move is part of the company’s efforts to regain its lost market share in China, where it has faced increasing competition from domestic and foreign manufacturers.
VW has been the leader in China for years
For many years, Volkswagen was the most successful vehicle manufacturer in China. However, its market share has recently declined due to growing competition. The Wolfsburg-based company is therefore working with partners such as SAIC and Xpeng on new models to regain lost ground. Last year, SAIC-VW sold 1.2 million vehicles, 43 percent fewer than in 2017.
New plans to boost sales of Skoda brand
As part of its efforts to boost efficiency, Volkswagen is also considering increasing sales of its Skoda brand. Currently, Skoda accounts for only one percent of the sales of the joint venture SAIC-VW, down from 17 percent in 2017.
Employees to be transferred to new plant
Some employees from the Nanjing plant will also be transferred to the new plant, although the exact timeline for the move has not been finalized. It is unclear whether the factory in Nanjing will be closed or sold.
Reports of plant closures
Earlier reports had suggested that Volkswagen was planning to close some of its plants in China, including the Ningbo plant. However, two insiders have stressed that the Ningbo plant is not up for discussion.
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**Q: Why is Volkswagen shifting the production of Passat
