Industry-Wide disruption
Volkswagen's struggles are part of a larger trend affecting legacy automakers:
Factory Closures: Honda has closed six factories, while Hyundai sold its flagship multi-billion dollar factory in China at a significant loss.
Brand Exits: Jeep has sold off its assets after declaring bankruptcy, and Mitsubishi has left the Chinese market.
Rising Competition: Local Chinese carmakers are gaining market share, even in joint ventures with foreign automakers.