Shanghai Volkswagen, a key carmaker on the mainland, will extend its regular maintenance work and scale back production as it seeks to reduce inventory amid slowing sales, according to a source.
An executive with a major supplier to the carmaker said Shanghai Volkswagen would give some of the manufacturing works an extra weeklong holiday for the maintenance.
The carmaker also had to lower production because of lower consumer demand recently, the source said.
'The company wants to ease the burden on the current high inventory too,' he said. 'Overall, its performance this year is quite satisfactory, and it will brave through the rough weather next year.'
Shanghai Volkswagen, however, denied a media report that it would suspend production.
China Central Television reported yesterday Shanghai Volkswagen and FAW-Volkswagen would halt production at a time when most mainland carmakers would not be able to meet their full-year sales target.
'The [reports of a] so-called production halt were not correct,' said a communications officer with Shanghai Volkswagen. 'We are actually going to do maintenance work, a regular year-end task.'
