German State Governor: "Let's produce Chinese cars in Volkswagen's idle factories!"

On May 24, South Korean media outlet *Herald Economic* published an article stating that the government of Lower Saxony, where Volkswagen's headquarters is located, has proposed having Volkswagen manufacture cars for Chinese companies in its German factories.

Recently, Lower Saxony State Governor Olaf Lies said in an interview about cooperation in production: "We need to openly discuss this issue and examine whether Volkswagen’s production facilities and parts industry can benefit from it."

"We cannot stop China from entering the European market; the key is to secure jobs at all factories and maximize the utilization of production facilities," he added.

The Lower Saxony state government is Volkswagen’s second-largest shareholder and holds veto power over major decisions.

The proposal by Prime Minister Lies comes as Volkswagen is discussing how to utilize existing factories to reduce capacity in line with demand.

Volkswagen and its labor unions have agreed to cease car production at the Osnabrück and Dresden plants in 2024, but are seeking alternatives—such as selling the factories—rather than shutting them down entirely.

Subsequently, reports emerged that Rheinmetall, a German defense contractor, is considering acquiring the Osnabrück plant, though this remains unconfirmed.

Volkswagen owns approximately 30 production plants in China through joint ventures with local enterprises such as SAIC. Meanwhile, Chinese companies like BYD and Geely are expanding their local production capacities by building new factories or leasing facilities from European firms in countries including Hungary and Turkey.

In this context, BYD recently applied to join the European Automobile Manufacturers Association (ACEA), the lobbying group representing European automakers. Among ACEA’s current 17 members are non-European companies such as Ford and Honda, but no Chinese firms.

Original source: toutiao.com/article/1866068402230282/

Disclaimer: This article reflects the personal views of the author