economy - VW slashes China investment by 22 percent

The German car manufacturer Volkswagen will reduce its investments in its Chinese joint ventures by 22 percent to 2.1 billion euro as a part of a worldwide cost cutting operation, the Financial Times writes today.
VW is the first automotive industry in China that hits the brakes in a major way, after have several fat years. Over the past few months sales have done down, despite major price cuts, export is still no option and overcapacity is hitting the industry. VW lost this year its leading position in the Chinese sedan-market to GM, but because of the high investment still on its way by competitors, more cuts in investments can be expected.