Volkswagen's Strategic Shift in China

In a significant move, Volkswagen Group CEO Oliver Blume announced on Wednesday in Shanghai that the automotive giant is set to adjust its production scale in China. This decision comes as the market becomes increasingly competitive, with local brands gaining momentum.

Learning from the Past

Blume drew parallels to the company's recent adjustments in Germany, where 35,000 jobs were cut and production was reduced by approximately 730,000 units in December 2024. "We have enormous capacity in China from the past. It will be a similar process to what we went through in Germany," he stated.

Countering the Decline

Despite being the leading foreign car manufacturer in China, Volkswagen has seen a notable dip in sales. In response, the company unveiled 20 new electric vehicles and advanced driver assistance systems at this year's Shanghai auto show, aiming to reclaim its market dominance.