Will Volkswagen give a huge gift to the Chinese!

The automotive industry is anything but Candide; that’s for sure. The latest example revolves around Volkswagen’s troubles.

Chinese electric vehicle manufacturers are seeking strategic opportunities to penetrate the European market, and Volkswagen’s idle factories in Germany could become their ideal target.

Due to costly restructuring, Volkswagen plans to cease operations at several of its sites in Germany by 2027, including Dresden, where the somewhat unimpressive ID.3 is produced, and Osnabrück. Although the German manufacturer still considers repurposing these sites, discussions are emerging about their potential acquisition by Chinese manufacturers.

Chinese manufacturers facing increasing trade barriers see these ready-to-use facilities as a rare opportunity. This would not only allow them to bypass import taxes but also make a strategic move by establishing a direct presence in Europe’s industrial heartland. And all at a lower cost since Volkswagen’s infrastructures are far from outdated. Of course, this isn’t imminent, but by 2027 any manufacturer from the Middle Kingdom could easily become a builder on the old continent in the blink of an eye, and of course, receive a big transfer in euros.

Does Volkswagen Have a Choice?

This initiative goes far beyond a simple factory acquisition. It symbolizes a political and strategic move by China, demonstrating its ability to redefine the rules of a market historically dominated by Europe. For Volkswagen, ceding these sites could ease financial constraints and justify reducing excess manufacturing capacity. One could even imagine an agreement to produce models with two distinct badges like Mitsubishi does with Renault, or more recently Toyota with Suzuki.

However, for Europe, the stakes are significant. If Chinese manufacturers establish themselves in Germany, their influence could grow, and the need for a coordinated political and economic response would become urgent. Control over these factories could turn into the next battleground between innovation and industrial sovereignty.

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