Volkswagen has confirmed that it is considering selling some of its German car factories to Chinese manufacturers as part of a cost-cutting plan to save billions.
The move comes as Volkswagen looks to restructure its business.
Recently, Audi, which is part of the Volkswagen Group, announced that it will close its factory in Brussels in early 2025, leaving Belgium with just one remaining car plant, owned by Volvo.
Now, for the first time, Volkswagen is also looking at selling factories in Germany, something that has never happened before.
In an interview with the Financial Times, Audi CEO Gernot Döllner said selling German factories to Chinese companies is possible and could help them enter the European market more easily.
"I believe in free trade," he added.
Volkswagen’s Chief Financial Officer David Powells also confirmed that selling to Chinese automakers is an option, stating, "We are open to discussions with any partner."
A Big Opportunity for Chinese Car Brands
So far, Chinese automakers have struggled to sell cars in Europe, even though they offer competitive prices.
Most Chinese-made cars in Europe come from brands like Tesla, Volvo, and Polestar, which don’t advertise themselves as Chinese.
Buying Volkswagen’s German factories would allow Chinese brands to produce cars directly in Europe, helping them compete more effectively. Japanese and South Korean brands have used this strategy for years, setting up local factories to better serve European customers.
The European Union recently introduced tariffs on electric cars imported from China, making them more expensive to sell in Europe.
However, if Chinese automakers produce cars inside Germany, they could avoid these extra costs.
Volkswagen itself is affected by these tariffs.
For example, the Cupra Tavascan electric SUV, which is made in a Volkswagen factory in China, will now face higher taxes when sold in Europe. Selling some of its German plants to Chinese firms could help those companies avoid tariffs while also helping Volkswagen reduce costs.
