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Volkswagen's Skoda considers withdrawing from China - media report

Published 12/11/2022, 06:14 AM
Updated 12/11/2022, 11:25 AM
© Reuters. FILE PHOTO: An employee wipes the bonnet of Skoda Enyaq as Skoda Auto carmaker launches production of MEB battery systems in Mlada Boleslav, Czech Republic, May 17, 2022.  REUTERS/David W Cerny
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BERLIN (Reuters) - Czech carmaker Skoda Auto, part of Volkswagen (ETR:VOWG_p), is considering withdrawing from China and will make a final decision next year, CEO Klaus Zellmer was quoted as saying by the weekly magazine Automobilwoche.

"The competition is very intense there, so we will consider, together with our Chinese joint venture partner, how we want to proceed," Zellmer was quoted as saying. "If we want to focus our energy, it's worth checking all scenarios and then deciding."

The chief executive said the company could consider simply selling cars in China rather than also producing them there.

Skoda wants to focus more in India at the moment, he said.

© Reuters. FILE PHOTO: An employee wipes the bonnet of Skoda Enyaq as Skoda Auto carmaker launches production of MEB battery systems in Mlada Boleslav, Czech Republic, May 17, 2022.  REUTERS/David W Cerny

Volkswagen said in a statement to Reuters that it was normal business procedure for Skoda to continuously be checking its position in international markets and adapt that to local developments.

"There have been no decisions so far on possible modifications in our strategy," the company said.

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