VW German Plant Eases Closure Pressure, German State Premier Suggests Producing Chinese Brand Cars
Amidst pressure on German factories to close, the German state premier suggests discussing the production of Chinese brand cars in idle VW plants to ensure employment and maintain the local economy. This indicates a turning point for the German automotive industry facing the EV era.
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- 📰 Published: April 20, 2026 at 17:26
- 🔍 Collected: April 20, 2026 at 17:31 (5 min after Published)
- 🤖 AI Analyzed: April 20, 2026 at 17:34 (3 min after Collected)
Germany's automotive industry has been facing a crisis of factory closures in recent years. The Minister-President of Lower Saxony, Olaf Lies, has suggested that discussions should be opened regarding the possibility of Chinese automakers producing vehicles in idle Volkswagen factories in Germany, ensuring employment and maintaining the local economy. The state of Lower Saxony holds an 11.8% stake in Volkswagen and 20% voting rights, thus Lies's remarks have drawn attention.
In an interview with Neue Osnabrücker Zeitung (NOZ) on the 19th, Lies proposed that Germany should open discussions on the possibility of Chinese car companies producing vehicles in Germany and consider whether related cooperation models can bring new opportunities to the domestic automotive manufacturing industry.
Volkswagen Group (VW) has multiple production sites in Germany, most of which are located in Lower Saxony. The state government is the largest single public shareholder, holding approximately 11.8% of VW's shares and, under VW's corporate governance mechanism, has veto power over major decisions, equivalent to controlling about 20% of the voting rights.
Lies, who also serves on VW's supervisory board, believes that the influx of Chinese cars into the European market is an unstoppable wave. What is currently needed is a solution that can "ensure that German domestic automotive factories can continue to operate and that local factory employees have jobs."
VW has faced pressure from the electric vehicle transition and declining market demand in recent years. In 2024, it announced the closure of three factories within Germany. Recently, a labor agreement was reached, planning to cut 50,000 jobs by 2030, impacting many employee families.
According to Handelsblatt, Lies visited China for several days in mid-April to understand VW's business development there and observe the latest advancements in the local automotive industry and electric vehicle technology.
Currently, VW has over 30 production sites in China, where it has long developed vehicle models adapted to the local market through joint ventures and cooperation. Lies pointed out that VW's experience in China makes one wonder if similar cooperation models could be replicated in Europe.
German automotive industry expert Frank Schwope told Bild that Lies's suggestion is practically feasible, and similar cooperation models have already emerged in Europe.
Schwope cited the example of European-American automaker Stellantis, which established a joint venture in Europe with China's LeapMotor in recent years. The model involves LeapMotor providing electric vehicle technology and products, while Stellantis handles EV assembly and market marketing in Europe.
Germany's automotive industry, traditionally proud of its internal combustion engine vehicles and precision manufacturing, is now also entering the military supply chain in response to the European rearmament trend, shifting some production capacity towards manufacturing tanks or weapon carriers under the pressure of factory closures.
With manufacturing costs for labor, energy, and other factors being higher in Germany than in China, whether "Chinese EVs manufactured in Germany" can become a remedy for Germany's core industry remains to be debated and verified by time.
For Chinese electric vehicle manufacturers, gaining market access and reducing policy risks such as EU anti-subsidy measures through manufacturing within the EU might be a viable option for expanding into the European market. (Edited by: Chang Chih-hsuan) 20260420
In an interview with Neue Osnabrücker Zeitung (NOZ) on the 19th, Lies proposed that Germany should open discussions on the possibility of Chinese car companies producing vehicles in Germany and consider whether related cooperation models can bring new opportunities to the domestic automotive manufacturing industry.
Volkswagen Group (VW) has multiple production sites in Germany, most of which are located in Lower Saxony. The state government is the largest single public shareholder, holding approximately 11.8% of VW's shares and, under VW's corporate governance mechanism, has veto power over major decisions, equivalent to controlling about 20% of the voting rights.
Lies, who also serves on VW's supervisory board, believes that the influx of Chinese cars into the European market is an unstoppable wave. What is currently needed is a solution that can "ensure that German domestic automotive factories can continue to operate and that local factory employees have jobs."
VW has faced pressure from the electric vehicle transition and declining market demand in recent years. In 2024, it announced the closure of three factories within Germany. Recently, a labor agreement was reached, planning to cut 50,000 jobs by 2030, impacting many employee families.
According to Handelsblatt, Lies visited China for several days in mid-April to understand VW's business development there and observe the latest advancements in the local automotive industry and electric vehicle technology.
Currently, VW has over 30 production sites in China, where it has long developed vehicle models adapted to the local market through joint ventures and cooperation. Lies pointed out that VW's experience in China makes one wonder if similar cooperation models could be replicated in Europe.
German automotive industry expert Frank Schwope told Bild that Lies's suggestion is practically feasible, and similar cooperation models have already emerged in Europe.
Schwope cited the example of European-American automaker Stellantis, which established a joint venture in Europe with China's LeapMotor in recent years. The model involves LeapMotor providing electric vehicle technology and products, while Stellantis handles EV assembly and market marketing in Europe.
Germany's automotive industry, traditionally proud of its internal combustion engine vehicles and precision manufacturing, is now also entering the military supply chain in response to the European rearmament trend, shifting some production capacity towards manufacturing tanks or weapon carriers under the pressure of factory closures.
With manufacturing costs for labor, energy, and other factors being higher in Germany than in China, whether "Chinese EVs manufactured in Germany" can become a remedy for Germany's core industry remains to be debated and verified by time.
For Chinese electric vehicle manufacturers, gaining market access and reducing policy risks such as EU anti-subsidy measures through manufacturing within the EU might be a viable option for expanding into the European market. (Edited by: Chang Chih-hsuan) 20260420