FAW-Volkswagen is reportedly trimming its employee count in its second plant due to the poor sales of the Magotan and Sagitar models.
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SinoCast has reported that people close to the company said it had dismissed over 700 employees on slower sales of the two models.
The move comes as China’s car market cools and pressures to lower prices are increasing.
Currently, dealers of the Magotan and Sagitar have rising stocks of the cars.
Large inventory caused FAW-VW to lower the prices of car models including Magotan, Sagitar and Bora Classic recently.
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By GlobalDataThe report says that Magotan and Sagitar production has halted, with capacity diverted to the New Bora.
See also: CHINA: Price war breaks out in China
