HONG KONG, Sept 21 (Askume) – SAIC Volkswagen on Saturday responded to reports of shutting its Nanjing factory, saying it was “normal and necessary” to adjust its production base, according to Chinese media outlet China Business News.
In a sign of the struggle, Askume reported this week that Germany’s Volkswagen AG (VOWG_p.DE) plans to shut down production at its combustion engine vehicle plants in China to help automakers manage excess capacity in the world’s biggest auto market.
Some reports have suggested Volkswagen’s joint venture with Chinese partner SAIC Motor Corp (600104.SS) would close the Nanjing plant, but a person with direct knowledge of the matter told Askume the company was not considering selling or closing the plant and had not yet made a decision.
When asked about its plan to shut down the Nanjing plant on Saturday, SAIC Volkswagen said, “Based on the company’s strategic planning and in response to market trends, the company’s adjustments to its production base are normal and necessary business practices.”
China Business News quoted SAIC Volkswagen as saying that production at the Nanjing plant remains normal, but many new products such as gasoline and new energy vehicles will be launched in the future, so the production base needs to be adjusted accordingly.
The company did not immediately respond to a Askume request for comment on Saturday. On Wednesday, Volkswagen said it did not comment on speculation, and SAIC could not be contacted for comment.
