Chinese officials and automakers are reportedly eyeing German factories, particularly those of Volkswagen, which are slated for closure. This move would allow China to enhance its influence in Germany’s automotive sector, home to some of the world’s most renowned car brands.
Chinese companies have previously invested in various German industries, but traditional car manufacturing has yet to take root, despite significant investments in Mercedes-Benz by Chinese stakeholders.
If Chinese companies were to acquire factories in Germany, it could help them avoid European Union tariffs on electric vehicles (EVs) imported from China, offering a competitive edge over European manufacturers. However, such an investment would be politically sensitive, especially as relations between China and Germany have become more strained under the current government.
The new German government’s stance on China, especially following the February election, will play a pivotal role in determining whether such investments are approved.
Volkswagen is considering the closure of some of its German factories, including those in Dresden and Osnabrück, as part of a cost-cutting initiative.
The company is open to the idea of selling the Osnabrück factory to a Chinese buyer, but concerns over union reactions and job security remain. While Chinese companies may explore joint ventures or direct purchases, the outcome hinges on both political and labor considerations in Germany.
