Volkswagen Set to Shut Down China Manual Transmission Plant

German automaker Volkswagen announced that a manual transmission plant in China owned by its joint venture with SAIC Motors will be closed next March. The company communicated the decision with the factory staff via a letter this week. Volkswagen has been winding down production of manual transmission cars in China because domestic customers prefer automatic transmission.

Volkswagen’s decision was taken several years ago, and the annual production of manual transmission cars by the joint venture had already fallen from 500,000 to about 50,000.

“For years, customer demand and, with it, our production and employee numbers have consistently fallen … shareholders came together with the management board and decided to suspend production,” the letter to the factory staff said.

Around 250 workers are expected to be affected by the decision, and the company said it would offer support measures.

Volkswagen’s joint venture with FAW in the northeastern city of Changchun will continue to produce manual transmission systems, though output has also fallen in recent years.

Although the German automaker is the largest foreign automotive company in China, it has been battling, like other foreign automakers, to compete with Chinese electric vehicle manufacturers.

It aims to double sales this year from last year’s 70,000, still a long way short of competitors such as BYD, which sold nearly 220,000 EVs in October alone.

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now


Do you need to access special insights on this matter?

Start your 7-day free trial  and become a member today


Subscribe to Top Insights Today

Subscribe to Executive Newsletter Top Insights Today

The Executive Newsletter -Top Insights Today- puts global business events in perspective through special insights

Join the ranks of global executives and subscribe to Top Insights Today

Top Insights Today covers insights on energy, clean-tech, oil&gas, mining, rare earths, defense, aviation, infrastructure, manufacturing, electrical vehicles, big-tech, finance and politics of business

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Special Report-Canadian Government Rejects Chinese Acquisition of Gold Mine

Canadian Government rejected Shandong Gold Mining Company’s planned takeover of Canada’s TMAC Resources. The Chinese state controlled company was designated as a potential security risk. 

Britain to Supply Short Range Anti-Air Missiles to Ukraine

Britain increases its supply of weapons to Ukraine, adding the short range portable anti-air Starstreak missiles built by Thales. Britain has sent a significant number of anti-tank weapons so far to Ukraine. The government confirmed that the decision was taken in principle to provide Ukraine with the short-range missile. 

Japan Mulling Over Pacific Meeting on the Sidelines of NATO Summit

Japan’s Prime Minister Kishida eyes a meeting with leaders of Australia, New Zealand and South Korea on the sidelines of the NATO Summit scheduled later this month in Madrid. Kishida wants to show solidarity against a more assertive China. 

Stay informed

error: This content is protected !!