Volkswagen faces overcapacity in China

Volkswagen has a large network of production bases in the Chinese market, covering Shanghai, Changchun, Dalian, Nanjing and other cities, with a total of 39 factories. However, Volkswagen has also encountered the problem of overcapacity in the Chinese market. According to reports, Volkswagen is considering selling its joint venture factory in Nanjing. This factory was established in cooperation with SAIC Group in 2008. It has a complete vehicle production line with an original annual design capacity of 360,000 vehicles. It mainly produces Volkswagen Passat and Skoda Superb. As the actual capacity utilization rate did not meet expectations, Volkswagen decided to sell this factory.