Electrification is SAIC Volkswagen’s official response now
Electrification is SAIC Volkswagen’s official response now
Electrification Transformation
It was reported that the first factory of SAIC Volkswagen was closed permanently, and the official response was that it was just an “electric transformation”.
According to news on June 6, it was reported on the Internet that SAIC Volkswagen’s three OEMs in Anting.Shanghai are undergoing production line adjustments: the first factory (mainly producing small cars such as Volkswagen Polo and Skoda Facial) will end production in July 2022.
It has been permanently shut down, and some Electrification production lines have been relocated to Yizheng, Jiangsu.
The second factory has started a combined shift, merging two production shifts into one shift; the third factory may start a combined shift in the second half of this year.
SAIC Volkswagen
A few days ago, SAIC Volkswagen responded to these rumors to the media, saying that “this is patchwork information”.
It is actually a part of a series of actions of SAIC Volkswagen’s electrification transformation and Anting base upgrade and transformation.
According to an economic view report, SAIC Volkswagen stated that the closure of the first factory and the joint shift of the second factory are measures for “transformation and upgrading” and “a part of the rational planning of the production layout of its electric vehicles and fuel vehicles.”
After the transformation and upgrading of the No. 1 Automobile Factory, some fuel-fueled models will be transferred to Yizheng Factory for production, so as to give full play to the potential of the base outside Shanghai.
The plant’s employees will continue to support production at the MEB plant and other plants after undergoing relevant training.
The Anting base will rely on the MEB factory and related supporting and R&D bases to focus on electrification, intelligent manufacturing, and user-oriented R&D capacity building.
As for how the first factory will use the waste heat in the future, SAIC Volkswagen said that the first automobile factory will further expand the functions of the R&D center.
The second phase of the R&D center located in the first automobile factory has been fully put into use in 2021.
According to SAIC Volkswagen’s plan, Anting will be built into a modern headquarters park with a global leading level integrating “management headquarters, intelligent manufacturing base, R&D and innovation base” and other functions in the future.
However, although SAIC Volkswagen officially explained that the first factory has not been permanently closed, it is an indisputable fact that its sales have been declining year by year.
According to the data, from November 2022 to March 2023, SAIC Volkswagen’s sales have declined for five consecutive months, and the year-on-year decline has exceeded 10%.
On May 6, SAIC Motor announced its production and sales report for April.
Among them, SAIC Volkswagen produced 74,489 vehicles in April, an increase of 173% year-on-year, and the cumulative output this year decreased by 14% year-on-year; sales volume was 88,323 vehicles, an increase of 194% year-on-year, and the cumulative sales volume this year decreased by 11% year-on-year.
SAIC Volkswagen will sell a total of 1.39 million vehicles in 2020, 1.34 million vehicles in 2021, and over 1.32 million vehicles in 2022.
In 2023, the domestic auto market will start a full-scale price war, and at the same time, the competition in the new energy market will intensify.
Whether SAIC Volkswagen can go against the trend and become stronger remains to be seen.
The author learned from the official website of SAIC Volkswagen that SAIC Volkswagen Co., Ltd. (“SAIC Volkswagen”) is a Sino-German joint venture, jointly operated by SAIC and Volkswagen Group.
The company signed a contract and laid the foundation stone in October 1984, and is one of the oldest automobile joint ventures in China.
The company is headquartered in Anting, Shanghai, and has successively established production bases in Nanjing, Yizheng, Urumqi, Ningbo, Changsha and other places.
The 26 millionth car of SAIC Volkswagen rolled off the production line on January 18.
At present, the brand is vigorously transforming to new energy sources and has launched a variety of ID. models.
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