Volkswagen considers selling factory in Germany to Chinese amid financial crisis

Volkswagen considers selling factory in Germany to Chinese amid financial crisis (Akhil Simha / Unsplash)

Volkswagen is facing a serious crisis in Europe, which has pressured the automaker to reduce costs and restructure its operations.

Despite initial plans to close three factories on the continent, pressure from unions led to the decision to suspend the activities of two factories in Germany, Dresden and Osnabrück, until 2027. This will affect about 2,500 workers and has led VW to consider selling these facilities, with the Osnabrück factory being a potential target for acquisition by Chinese companies.

While the German economy faces difficulties, Chinese automakers continue to aggressively expand in the global market. The Osnabrück factory is seen as a strategic opportunity to facilitate the entry of Chinese companies into Europe, reducing production costs and avoiding import taxes.

A local union representative stated that workers would not oppose the production of vehicles for VW’s Chinese partners, as long as the brand logo is kept.

Although there has been no official statement from China on the negotiations, the Chinese government has expressed the importance of a fair environment for foreign investments in Germany. For Chinese automakers, acquiring European factories represents a strategic move, ensuring competitiveness and consolidating their growing presence in the global automotive market.

Source: Quatro Rodas | Photo: Unsplash | This content was created with the help of AI and reviewed by the editorial team