Is Beijing now taking over? Chinese investors want to buy two VW plants
Volkswagen is considering selling its plants in Osnabrück and Dresden to Chinese investors. This also has to do with the tariffs imposed by the EU on Chinese cars.
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- Chinese investors are interested in the Volkswagen plants in Osnabrück and Dresden.
- The VW Group wants to close the production plants in order to save costs and thus improve its financially difficult situation.
- Chinese car manufacturers can avoid EU tariffs by producing in Europe. BYD and Leapmotor are looking for sites in EU countries or have already found them.
The Volkswagen Group is in difficulties and has been thinking about closing plants for some time. Beijing sees this as another opportunity to expand its car production in Europe. According to a report in "t-online", Chinese investors are showing great interest in taking over the plants in Osnabrück and Dresden.
Volkswagen is currently examining alternative uses for these two plants. It seems clear that they are to be shut down in order to reduce the company's costs.
A Chinese government insider told Reuters that the acquisition of such a factory could strengthen China's influence in the renowned German automotive industry.
Avoiding EU tariffs
So far, Chinese companies have gained a foothold in many areas of the German economy, from telecommunications to robotics. However, there is still no traditional automotive production by Chinese manufacturers on German soil. A plant in Germany could make it possible to circumvent EU tariffs on electric vehicles, which could increase competition for European manufacturers.
The plant in Dresden, which currently produces the electric ID.3, is to be closed by 2025. In Osnabrück, production of the T-Roc convertible will be discontinued by 2027. A total of 340 employees in Dresden and 2,300 in Osnabrück will be affected.
An insider familiar with the Group's deliberations stated that Volkswagen is prepared to sell the plant in Osnabrück to a Chinese buyer. A VW spokesperson emphasized that the company is striving to find a sustainable solution that takes into account the interests of both the company and its employees. He did not comment on specific offers.
Economic relations between Germany and China intensified during Angela Merkel's time in office, but have cooled off recently. The outgoing German government sought to reduce economic dependence on China. Foreign Minister Annalena Baerbock described President Xi Jinping as a "dictator" and China as a "systemic rival".
Chinese car manufacturers are looking for locations throughout Europe
A spokesperson for the Chinese Foreign Ministry explained that China had taken measures to create new business opportunities for foreign companies. He hoped that Germany would provide a fair and non-discriminatory business environment for Chinese investment.
Many Chinese car manufacturers are currently looking for locations in Europe to circumvent the tariffs imposed by the EU. BYD is planning a factory in Hungary, Leapmotor is working with Stellantis in Poland and Chery Auto will produce electric vehicles in a former Nissan plant in Spain. Chinese investors have reportedly already visited various European plants, including the Ford plant in Saarlouis and Volkswagen's Audi plant in Brussels.
Volkswagen has not provided any information on the value of the affected sites. A banker familiar with the car manufacturer estimates that the plants could be worth between 100 and 300 million euros each. Stephan Weil, Minister President of Lower Saxony and member of the VW Supervisory Board, declined to comment.
The editor wrote this article with the help of AI.