Volkswagen's Strategic Shift in China

In a significant move, the Volkswagen Group CEO, Oliver Blume, revealed plans to adjust the company's production size in China. Speaking in Shanghai, Blume described the Chinese market as "highly competitive," necessitating this strategic shift.

Learning from Past Experiences

Blume drew parallels to the company's recent adjustments in Germany, where 35,000 jobs were cut and production was reduced by around 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 its commitment to innovation and market adaptation.