Volkswagen Closes Strategic Manufacturing Hub amid Market Challenges

11.07.2025 | Cars

The German automotive giant Volkswagen is undertaking a large-scale restructuring operation in China, closing a joint factory with SAIC in Nanjing due to a shrinking market share and the need for optimization.

Снимка от Ivan Radic, Wikimedia Commons, под CC BY 2.0

Leading global automotive manufacturer Volkswagen is proceeding with a radical transformation of its production facilities in the Asia-Pacific region. Official sources from the company confirmed plans to completely cease operations in the joint venture with Chinese partner SAIC, based in Nanjing.

According to information spread by the economic publication Handelsblatt, the production line has already been temporarily suspended. The strategic decision provides for complete termination of operations in the second half of 2025, with production capacities for the Passat model to be redirected to an alternative factory in Jiangsu province.

Behind the drastic step are complex market challenges - a significant reduction in market share and the need for radical optimization of production capacity. Although official Volkswagen representatives remain reserved on the topic, experts view such actions as part of a larger strategic transformation.