Chinese OEMs rumoured to take over German factories
At least that is what the news agency Reuters is reporting, citing a “a person with knowledge of Chinese government thinking.” According to the report, Chinese authorities and car manufacturers are said to be interested in taking over one of the “unwanted” VW factories in order to expand their influence in Germany. According to the report, this is not only due to the calculations surrounding the EU special tariffs, but also to the interest in being part of “Germany’s prized auto industry.” Although Chinese companies have invested in numerous German industries, it has not yet been possible to establish a traditional automotive production facility in Germany for a Chinese company.
The Reuters report does not mention the names of potential interested parties from China, nor the German sites that are to be involved. However, since the wage agreement shortly before Christmas 2024, it has been clear which plants are affected: Production at the factory in Dresden, where around 6,000 ID.3s are built each year, is to be discontinued at the end of 2025 and the site is to be ‘rededicated’. “An alternative overall concept is now being developed for the period from 2026. One thing is already certain: Volkswagen AG will continue to have its own activities at the site in the future,” IG Metall announced in December. Unless the Chinese car manufacturer is an existing VW partner such as SAIC, FAW or Xpeng, it would be rather unlikely that such a deal with a subsequent VW presence would materialise. Especially as the capacities in Dresden are manageable.
That leaves the former Karmann plant in Osnabrück: although production of the VW T-Roc Cabrio, which was originally scheduled to run until 2026, has been extended until late summer 2027, the plant will be without a model after that. Officially, the aim was to develop an ‘economic future perspective for the site’. However, even before the “Christmas truce,” it had already leaked out that the prospects were heading towards a sale.
According to reports, “VW would be open to selling the Osnabrueck factory to a Chinese buyer.” A VW spokesperson officially stated: “We are committed to finding a continued use for the site. The goal must be a viable solution that takes into account the interests of the company and employees.” He did not comment on speculation about a concrete offer.
It is not yet clear whether a takeover or even an offer will actually materialise. According to the Reuters source, investment decisions will depend on the attitude of the new German government towards China after the elections in February. And even then, Beijing is apparently aware that such a move could be “China’s most politically sensitive investment yet,” as Reuters puts it. Resistance is therefore expected if a company from China were to take over a plant from the company that has long been seen internationally as a symbol of Germany’s industrial strength.
Chinese car manufacturers have repeatedly been linked to the takeover of German plants, such as BYD with the Ford plant in Saarlouis. Leapmotor International, a joint venture between Stellantis and the Chinese manufacturer Leapmotor, could actually build the B10 electric SUV in Eisenach. In the case of the VW Group, Nio was rumoured to be interested in a possible takeover of the Audi plant in Brussels, but the Chinese company denied this. On the other hand, there are still no statements on the alleged considerations regarding the VW plants.
0 Comments