The announced closure of some VW factories in Germany is generating interest from authorities and some Chinese manufacturers, who are looking to enter one of the largest automotive markets in Europe.
According to a report from “Reuters” this Thursday, citing a source close to the Chinese government, the purchase of a factory in Germany would allow China to gain influence in the German automotive industry, which includes some of the oldest and most prestigious car brands.
Chinese companies have been investing in various sectors in the largest economy in Europe, but they have not yet established traditional car production in Germany, despite Mercedes-Benz having two major Chinese shareholders.
Furthermore, producing vehicles in Europe would allow Chinese manufacturers of 100% electric models to avoid paying the tariffs imposed by the European Union on electric cars imported from China, which could pose an additional threat to the competitiveness of European manufacturers. However, it is important to remember that the German government will have the final say on any potential purchase of a car factory by Chinese interests.
It is worth noting that VW and the IG Metall union reached an agreement at the end of December aimed at the eventual closure of two of the ten factories that the automaker has in Germany, thus saving around four billion euros.
