Volkswagen's Strategic Shift in China

In a significant move, the Volkswagen Group's CEO, Oliver Blume, revealed plans to adjust production capacities in China, citing the market's intense competition. This announcement was made during a press conference in Shanghai on Wednesday.

Historical Context and Future Plans

Blume compared the upcoming adjustments to the company's recent restructuring in Germany, where 35,000 jobs were eliminated, and production was cut by approximately 730,000 units in December 2024. "We have enormous capacity in China from the past. It will be a similar process," he stated.

Challenges and Innovations

Despite being the leading foreign car manufacturer in China, Volkswagen has seen a notable decline in sales, attributed to the rising popularity of local brands. In response, the company showcased 20 new electric vehicles and advanced driver assistance systems at the Shanghai auto show, signaling a strong push towards innovation and sustainability.