Chinese automotive leaders consider acquiring struggling German plants – Reuters
Chinese car manufacturers and government representatives are said to be in talks to acquire German factories that are scheduled for shutdown. Read Full Article at RT.com
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Localizing production is anticipated to help Chinese EV manufacturers bypass EU import tariffs.
Chinese officials and automotive companies are reportedly interested in acquiring Volkswagen factories in Germany that are set for closure, according to a source familiar with Beijing’s perspective on the matter, as reported by Reuters.
The source indicated that Beijing believes establishing local production in Germany would enhance its influence within the nation’s esteemed automotive sector. Furthermore, Chinese electric vehicle producers would benefit by avoiding import tariffs when selling their cars in the EU, Reuters noted.
In October 2024, the European Commission increased import duties on Chinese electric vehicles to over 45% following an anti-subsidy investigation into imports.
In retaliation, Chinese authorities introduced provisional tariffs on EU-origin brandy and have threatened to impose higher tariffs on fuel-powered vehicles with large-displacement engines. Additionally, Beijing has initiated a lawsuit at the World Trade Organization, alleging that Brussels is engaging in “trade protectionism.”
Chinese investments in Germany, the EU’s economic leader, span a diverse range of sectors, including telecommunications and robotics. Currently, Mercedes-Benz has two significant shareholders from the People’s Republic.
Investment decisions, as noted by the source to Reuters, will largely depend on the new German government’s position towards China in the wake of the upcoming election set for February 23.
Last year, Volkswagen revealed plans to close at least three of its production facilities in Germany, laying off thousands of workers and implementing a 10% pay cut. Subsequently, VW and the German union IG Metall came to an agreement to prevent involuntary layoffs and plant closures in the country until 2030.
At that time, Daniela Cavallo, head of Volkswagen’s works council, urged German authorities to devise a strategy to prevent the country’s economy from “going down the drain.”
The car manufacturer, along with other companies throughout the EU, has been affected by the global economic downturn, which has led to decreased demand for their products, alongside the transition to greener technologies.
Aarav Patel contributed to this report for TROIB News
Chinese officials and automotive companies are reportedly interested in acquiring Volkswagen factories in Germany that are set for closure, according to a source familiar with Beijing’s perspective on the matter, as reported by Reuters.
The source indicated that Beijing believes establishing local production in Germany would enhance its influence within the nation’s esteemed automotive sector. Furthermore, Chinese electric vehicle producers would benefit by avoiding import tariffs when selling their cars in the EU, Reuters noted.
In October 2024, the European Commission increased import duties on Chinese electric vehicles to over 45% following an anti-subsidy investigation into imports.
In retaliation, Chinese authorities introduced provisional tariffs on EU-origin brandy and have threatened to impose higher tariffs on fuel-powered vehicles with large-displacement engines. Additionally, Beijing has initiated a lawsuit at the World Trade Organization, alleging that Brussels is engaging in “trade protectionism.”
Chinese investments in Germany, the EU’s economic leader, span a diverse range of sectors, including telecommunications and robotics. Currently, Mercedes-Benz has two significant shareholders from the People’s Republic.
Investment decisions, as noted by the source to Reuters, will largely depend on the new German government’s position towards China in the wake of the upcoming election set for February 23.
Last year, Volkswagen revealed plans to close at least three of its production facilities in Germany, laying off thousands of workers and implementing a 10% pay cut. Subsequently, VW and the German union IG Metall came to an agreement to prevent involuntary layoffs and plant closures in the country until 2030.
At that time, Daniela Cavallo, head of Volkswagen’s works council, urged German authorities to devise a strategy to prevent the country’s economy from “going down the drain.”
The car manufacturer, along with other companies throughout the EU, has been affected by the global economic downturn, which has led to decreased demand for their products, alongside the transition to greener technologies.
Aarav Patel contributed to this report for TROIB News
