Volkswagen AG’s joint venture with SAIC Motor will end production of the Santana, Skoda’s Rapid and a current version of Tharu sport-utility vehicles (SUV) at its plant in the eastern city of Yizheng, government documents showed.
That plant is the main factory responsible for making Santanas in China and has the capacity to manufacture 224,400 units a year.
Volkswagen did not directly comment on its plans for the Santana but said in a statement to Reuters consumer tastes had shifted away from sedans toward SUVs.
“Customer preferences are gradually shifting away from notchback ICE (internal combustion engine) models towards BEV (battery electric vehicle) and SUV models,” the company said.
Production of Santanas began in China in 1985 and Volkswagen said more than 6 million had been delivered to Chinese customers over the years. It was unclear whether Volkswagen would continue to make Santanas in other markets.
The affordable sedans – which became status symbols in the 1990s as China’s economy boomed – have been credited with helping Volkswagen break into the Chinese market and rise to the top rank of foreign automakers there in terms of sales.
Volkswagen sold 3.85 million vehicles in China last year, ahead of second-ranked foreign manufacturer General Motors Co, thanks in part to its shift in focus to more popular and profitable SUV models.
Competition in the family car market has intensified with the entry of more international rivals and Chinese firms, putting pressure on some of the established foreign manufacturers.
In the first 10 months of this year, SAIC-Volkswagen sold 970,438 vehicles, down 18% from a year earlier. Companies such as Hyundai Motor, Renault and Suzuki Motor have shut plants, exited joint ventures or quit the Chinese market entirely.
Instead of Santanas and Rapids, the Yizheng plant would make T-Cross and facelifted Tharu SUVs, Polo hatchbacks and Lamando sedans, according to the document. These arrangements would be completed in 2023. Volkswagen has other joint ventures with FAW Group and JAC. All ventures are building new plants for electric vehicles.
Also Read:
Volkswagen plans new site in Germany to counter Tesla’s gigafactory
The plant, which still requires approval by Volkswagen’s supervisory board over the coming weeks, is part of the group’s Trinity project, under which the carmaker wants to build a flagship electric sedan in Wolfsburg from 2026.
Volkswagen CEO demands ‘revolution’ to tackle Tesla
The German group — whose 12 brands include Audi, Porsche and Skoda — is pumping 35 billion euros ($40 billion) into the shift to electric vehicles and aims to become the world’s largest electric carmaker by 2025.
- Electric car makers are moving into Tesla’s turf with new models
- So Long, Love Bug. Volkswagen Beetle Hits The End Of The Road.
- Electric car makers moving into Tesla's turf with new models
- VW planning $21,000 subcompact e-car to challenge Tesla
- Ford, Volkswagen flirt with relationship possibilities
- Tesla secures land in China for 1st factory outside US
- Tesla buys land in Shanghai, China for factory
- Volkswagen Beetle killed: VW to end Bug production in 2019
- The Latest: Ferrari to sell new model to only 499 people
- Tesla secures land for factory in China
- VW is halting production of its iconic Beetle
- As Tesla deals with internal woes, rivals make their move
- With Tesla distracted, rivals make their move
- Carmakers moving in on Tesla's turf
- Correction: Tesla-Electric Rivals story
- VW is ending production of its iconic Beetle car
- Europe’s regulations could make it leader in electric car production
- Climate goals mean Europe will overtake U.S. in electric cars
Volkswagen plans farewell to legendary Santana model in China have 598 words, post on auto.economictimes.indiatimes.com at November 10, 2021. This is cached page on Auto News. If you want remove this page, please contact us.