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Volkswagen to Close Nanjing Factory in First Complete China Plant Shutdown

Urban limits left the Nanjing site uneconomic for EV conversion, prompting VW to relocate remaining assembly to the nearby Yizheng facility.

Das Logo von Volkswagen leuchtet in rot am Heck eines Autos auf der Messe „Auto Shanghai 2025“ (Archiv).
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Overview

  • Production at the joint Volkswagen-SAIC Nanjing plant has already been suspended and will be phased out during the second half of 2025.
  • The 2008-opened factory carried a 360,000-vehicle annual capacity and most recently built the VW Passat and Škoda Superb under declining utilization.
  • Inner-city constraints in the Jiangning Economic and Technological Development Zone prevented cost-effective retooling for electric vehicle production.
  • Remaining vehicle assembly will move about 70 kilometers to the SAIC-operated Yizheng plant to sustain model supply.
  • The closure forms part of VW’s broader plan to optimize its China production network and accelerate its shift toward electric vehicles in a highly competitive market.