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August 21, 2015

CHINA: Volkswagen denies looming overcapacity

Volkswagen has denied a report in Wirtschaftswoche that capacity utilisation at the company's 20 Chinese car and components plants is falling.

Volkswagen has denied a report in Wirtschaftswoche that capacity utilisation at the company’s 20 Chinese car and components plants is falling.

Volkswagen said, “The statement that Volkswagen would confirm sinking utilisation of its Chinese auto and component plants is not correct.”

Wirtschaftswoche had said that the company plans to cut production and reduce Chinese output of key models by around 10-20%, Reuters reported.

“By building up additional production capacity such as our new car plant in Changsha and (a planned site) in Qingdao in 2017, Volkswagen will normalise the high existing workload at its factories to near 270 working days per year” from 300 days currently, Volkswagen said.

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