Volkswagen has been a symbol of German engineering and manufacturing strength for decades.
The company’s factories have produced millions of vehicles, fueling both the domestic economy and exports worldwide.
But now, the automotive giant is facing major financial pressures and is looking for ways to cut costs.
Volkswagen has confirmed that some of its German factories, which are scheduled for closure, could be sold to Chinese car brands.
An unprecedented move.
This comes as part of a broader effort to reduce expenses and restructure operations.
Audi, a subsidiary of Volkswagen, has already announced the closure of its only factory in Belgium in early 2025, leaving Volvo as the last remaining car manufacturer in the country.
Selling German production sites to Chinese automakers would be an unprecedented move, according to Boosted.
Historically, Germany has been protective of its automotive industry, seeing it as a key part of its economic identity. But the competitive landscape is changing.
Gernot Döllner, CEO of Audi, acknowledged that selling to Chinese manufacturers is a possibility.
He stated that lowering entry barriers for these competitors aligns with the principles of free trade.
Volkswagen’s chief financial officer, David Powels, echoed this sentiment, stating that the company remains open to discussions with any potential partners.
Chinese car brands have struggled to gain a foothold in Europe.
While many Chinese-made vehicles are already sold on the continent, they are often marketed under brands like Tesla, Volvo, and Polestar, which are not seen as traditionally Chinese.
Establishing production facilities in Europe would allow Chinese companies to better tailor their vehicles to local preferences and navigate trade restrictions.
EU tariffs on electric vehicles made in China pose another challenge for these manufacturers. By producing cars within Europe, they could avoid these additional costs.
Volkswagen’s restructuring could offer an opportunity for Chinese brands to expand their presence in the European market.
