Volkswagen Plans to Sell Nanjing Factory as China Operations Face Challenges

The German automaker is reducing capacity in China due to low demand and may divest additional facilities in the region.

Volkswagen is preparing to sell its factory in Nanjing, located northwest of Shanghai, citing low utilization rates and strategic inefficiencies.
The Nanjing plant, built in 2008 with Chinese partner SAIC, has a production capacity of 360,000 vehicles annually, including models like the VW Passat and Škoda Superb.
This follows Volkswagen's recent sale of its controversial facility in Xinjiang, which faced criticism over alleged human rights violations in the region.
The company is reportedly evaluating the future of its 26 factories in China, particularly those producing Škoda models, as the brand's sales decline sharply.
Volkswagen is also considering factory closures in Germany, with labor unions warning that tens of thousands of jobs could be at risk, and strikes are planned in response to these potential cuts.