Volkswagen's China comeback faces fresh doubts as sales slide

AutomobilesReliance on local partners grows while group trims capacity and staffA Volkswagen ID. UNYX 08 electric vehicle, co-developed with Xpeng, rolls out of a production line at the Volkswagen Anhui factory in Hefei on Feb. 4. © ReutersGLORIA LIAugust 14, 2026 15:00 JSTHONG KONG -- Volkswagen faces a reality check for its ambitious China comeback plan, as Europe's largest carmaker weighs mass layoffs on its home turf.