Germany Invites Chinese Automakers to Take Over Local Plants

[International Cooperation] Multiple German state governments are actively promoting the entry of Chinese automakers into local factories to alleviate an overcapacity crisis.

Core Development: German Side Proactively Invites Chinese Firms to 'Rescue the Situation'

The Minister-President of Lower Saxony, Lies, suggested that Volkswagen produce jointly developed models with XPeng and SAIC Motor at its German plants. Meanwhile, Saxony’s Minister of Economic Affairs, Pantke, proposed bringing in Chinese automakers to take over the Volkswagen plant in Zwickau, stating, “China represents an opportunity.”

Key Figures: Volkswagen Plans to Cut 100,000 Jobs and Close 4 Domestic Plants

In response to Volkswagen Group's plan for massive layoffs and plant closures, Germany's metalworkers' union (IG Metall) has strongly opposed the move. The government has also stated its aim is “to prevent factory shutdowns,” seeking instead cooperation with Chinese partners to maintain capacity utilization.

Strategic Shift: From Expansion to Survival

Germany’s auto industry is transitioning from an “era of expansion” into an “era of overcapacity.” Idle factories now threaten employment, and the push for collaboration stems from a need to address this structural crisis—not merely from technological or market complementarity.