Chinese officials and automakers are showing interest in buying Volkswagen’s German plants, which the company previously planned to close. This was reported to Reuters by a source familiar with the Chinese government’s position.
Author:
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According to the interlocutor, the purchase will allow China to increase its influence in the German automobile industry. In particular, production in Germany will help China circumvent EU tariffs on electric vehicles imported from China, which could potentially affect competition with European automakers.
The source indicated that investment decisions will depend on the new German government’s position towards China after the February elections. However, Chinese authorities reserve the right to approve certain foreign investments and are likely to be involved in any proposal from the beginning.
A banker close to Volkswagen told the agency that selling the businesses could cost the company less than closing them. He clarified that for each plant you can earn from $103 million to $309 million.
In October 2024, Reuters wrote that Volkswagen planned to close at least three German factories and lay off “tens of thousands” of employees to cut costs. In December, the Financial Times reported that the company, under pressure from the union, had scrapped the idea and was taking steps to reduce production capacity and reduce staff without layoffs.
Author:
Anastasia Lipchanskaya
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
