German auto giant Volkswagen has been going through tough times lately. Volkswagen, which has been in the spotlight with news of factory closures and mass layoffs, is now considering closing its factory in China. Although China Volkswagen While it is the company’s largest market, the German company, which has lost the market to domestic electric car makers such as BYD, is evaluating alternatives.

Volkswagen factory in the country, SAIC engine It was born from the cooperation with. The joint factory of the two companies may be closed due to a decrease in demand. Even if the factory is not closed, the slowing down of production is also a possibility.

360,000 vehicles are produced annually

In the SAIC Volkswagen factory 360 thousand vehicles per year is produced. This factory was used for the production of Passat and Skoda models. On the other hand, two companies had already decided to slow down production in one factory. Volkswagen-Germany in 39 factories Even at the end of last year, production was about 25 percent below capacity compared to before the pandemic.

Volkswagen China said all this in its statement SAIC VW facilities It is said to be operating normally and continuing production as per previous market forecasts. According to sources close to the matter, many vehicles are waiting at the facility to be sold. SAIC VW aims to be more competitive by increasing sales and developing cooperation with domestic manufacturers.