Volkswagen Shuts Down China Plant Amid Slowing Demand for Gasoline Cars

Volkswagen, the world's largest automaker, is accelerating its shift towards electric vehicles, closing a plant in Nanjing, China, where internal combustion engine cars are no longer in demand. The move comes amid a significant decline in gasoline car sales in China, the world's largest car market, where electric vehicles have become increasingly popular. Volkswagen is retooling its production facilities to meet the growing demand for electric vehicles, with many of its sites in China being converted or already converted for EV production.

Key Takeaways:

Volkswagen has shut down production at a plant in Nanjing, China, due to slowing demand for internal combustion engine cars.
The company is accelerating its transformation towards electric, intelligent, and connected vehicles.
Many SAIC Volkswagen sites are currently being converted or have already been converted for electric vehicle production.
EV sales are far advanced in China, forcing European companies to respond with local expertise and "In China, for China" strategies.
Volkswagen's vehicle deliveries in China dropped by just over two percent in the first half of this year.
The company is trying to fight back in the Chinese market with its local expertise, including a partnership with SAIC Motor Corp Ltd and Shenzhen-based BYD Auto Co Ltd.

Statistics:

Vehicle deliveries in China dropped by 2.1% in the first half of this year (Volkswagen's statement on Wednesday).
Volkswagen reported a 7.4% drop in vehicle deliveries in China in the first half of last year.
The production of internal combustion engine cars has slowed significantly in China, forcing European companies to adapt their production networks.
Electric vehicle sales are increasing rapidly in China, with EVs offered by local competitors such as BYD Auto Co Ltd.

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