Reuters has learned about the interest of Chinese companies in buying German Volkswagen plants
Chinese officials and automakers are studying the situation with German Volkswagen plants, which are planned to be closed, and are interested in acquiring these sites. This was reported by Reuters on January 16, citing a source familiar with the position of the Chinese governments.
According to him, the purchase of the plant will allow China to strengthen its influence in the European car market. The production of cars in Germany will help Chinese manufacturers avoid paying EU duties on electric cars imported from the PRC and could pose an additional threat to the competitiveness of European manufacturers.
The move will also become politically sensitive as Volkswagen has long been seen as one of the symbols of Germany's industrial might, now threatened by a global economic downturn hitting demand and the difficulty of switching to green technology.
The Volkswagen concern has seen sales fall amid growing competition from Chinese companies. As part of cost-cutting, the company planned to close several plants, but faced resistance from labor unions. It is assumed that in 2025 the concern will close the plant in Dresden (340 employees), and in 2027 - the enterprise in Osnabrück (2.3 thousand employees). Agency sources estimate each enterprise for the amount from €100 million to €300 million.
On December 20, 2024, Volkswagen announced that it will cut 35 thousand employees by 2030. In early December, workers at nine Volkswagen plants in Germany, which produce cars and components, went on strike, causing assembly lines to stop.