The Czech Volkswagen subsidiary Skoda is considering withdrawing from China. “There is very intense competition there. Together with the Chinese joint venture partner, we will look at how we want to continue there,” said Skoda boss Klaus Zellmer of the “Automobilwoche” according to the preliminary report on Sunday. “If we want to focus our forces, it is worth examining the scenarios and then deciding.”
Pure sales are also possible. A decision should be made in 2023. This would make Skoda VW space in the market. According to the report, Skoda wants to focus more on India, for which it is also responsible in the VW Group.
The VW Group confirmed that Skoda Auto is constantly reviewing its position on the international markets as part of normal business processes and adapting strategies to local developments. “Of course, that also applies to China.”
VW is in contact with the joint venture partner SAIC Volkswagen to examine how the brand can be optimally positioned in the Chinese market against the background of the transformation towards fully networked electric mobility. “There are currently no decisions on possible adjustments to our strategy,” said VW.
Top jobs of the day
Find the best jobs now and be notified by email.
The VW subsidiary Skoda is also responsible for the entire group’s business in Russia, which came to a standstill in the course of the war in Ukraine. After the start of the Russian invasion in February, the group stopped production and sales in Russia.
Provisions are currently being made, said Zellmer. “The consolidation of Volkswagen Group Rus within our financial results naturally means a special challenge for Skoda Auto with a negative effect on the annual operating result in the mid three-digit million range.” The future of the market in Russia is uncertain.
More: Study sees e-car market crashing in 2023