HONG KONG (Reuters) – SAIC Volkswagen (ETR:), responding to stories it will shut its Nanjing plant, mentioned on Saturday that adjusting its manufacturing base was “normal and necessary”, Chinese language media outlet Yicai reported.

Reuters reported this week that Germany’s Volkswagen plans to cease manufacturing at one in every of its combustion engine automotive vegetation in China, in an indication of automakers’ struggles to handle overcapacity on this planet’s largest automotive market.

Some stories mentioned the three way partnership of VW and Chinese language companion SAIC Motor would shut the Nanjing plant, though an individual with direct data of the matter advised Reuters the agency had not determined whether or not to promote or shut the plant.

Requested on Saturday about plans to shut the Nanjing plant, SAIC Volkswagen mentioned that “based on corporate strategic planning and reaction to market trends, company’s adjustment on its production base is a normal and necessary business behaviour”, Yicai mentioned.

Yicai quoted SAIC Volkswagen as saying manufacturing on the Nanjing plant stays regular however as it’s going to roll out many new merchandise sooner or later, together with gasoline and new power automobiles, it wants to regulate its manufacturing base accordingly.

The corporate didn’t instantly reply to Reuters request for touch upon Saturday. On Wednesday, Volkswagen mentioned it doesn’t touch upon hypothesis and SAIC couldn’t be reached for remark.