VW: No Production Cuts Planned in China

Volkswagen AG says it will not reduce production in China in spite of its 4% decline in VW brand deliveries there to 1.74 million units in the first half of 2015.

The statement refutes a report by Der Spiegel that said the company is considering cuts and might trim the number of work days in China to 270 from 300.

Last week analysts at Sanford C. Bernstein estimated local capacity utilization by international brands in China fell to 94% in January-June from at least 100% in recent years. The analysis predicts carmakers will be forced to accept lower utilization rates and the pressure on profits they cause in the future as the pace of China's economic expansion slows.