Finance
Volkswagen will go through 'right-size' process in China, CEO says
Published by Global Banking & Finance Review®
Posted on April 23, 2025
1 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on April 23, 2025
1 min readLast updated: January 24, 2026
Volkswagen will undergo a right-sizing process in China, similar to its German strategy, due to rising competition and EV sales.
SHANGHAI (Reuters) -German carmaker Volkswagen will need to go through a 'right-sizing' process in China, its group CEO said on Wednesday, as competition intensifies in the world's biggest auto market following a boom in electric vehicle sales in the past several years. "We have enormous capacity in China from the past. It will be a similar process (in China) to what we went through in Germany to right size," Oliver Blume told reporters at the Shanghai auto show.
He was referring to an agreement struck with unions late last year to remove around 700,000 units of capacity from the carmaker’s German sites and cut 35,000 jobs to reduce costs.
(Reporting by Victoria Waldersee; Editing by Jamie Freed and Jane Merriman)
The article discusses Volkswagen's plan to right-size its operations in China due to increased competition and the rise of electric vehicle sales.
Volkswagen is right-sizing in China to adapt to the competitive auto market and the surge in electric vehicle sales.
The right-sizing aims to optimize Volkswagen's capacity and reduce costs, similar to measures taken in Germany.
Explore more articles in the Finance category
