Rumors have it that Volkswagen could enter into a joint venture with a Chinese car manufacturer in Europe to produce the latter’s cars in its underutilized plants. Two top managers have spoken out in favor of such a move.
Audi boss Gernot Döllner is apparently open to offering surplus capacity in VW plants to Chinese car manufacturers. “For sure, that is thinkable,” Döllner told the Financial Times. “It’s a move that could lower the entrance barrier of these competitors,” Döllner added. “I believe in free trade.”
Independently of Döllner, David Powels, Head of Finance at the VW brand, did not rule out the possibility of building Chinese vehicles in VW plants. “We’re open to discussing any topic with any partner,” he said. “In a dynamic world, you must keep all options open.”
Already in talks?
While Döllner and Powels suggest future talks, concrete negotiations have apparently already taken place.
Last week, the German Manager Magazin reported that there had been talks about joint production with an unnamed manufacturer at the VW plant in Emden, Germany, where the carmaker builds the ID.4 and ID.7. However, “the cost structure did not suit the Chinese partners,” according to a source from the VW Group’s top management.
In mid-January, Reuters first reported, citing Chinese government circles, that Chinese authorities and car manufacturers were interested in taking over one of the ‘unwanted’ VW factories. A short time later, the possibility of a joint venture instead of a takeover was brought into play, as the Chinese side also realized how politically sensitive such a deal could be.
SAIC or Xpeng?
Of course, it remains to be seen which Chinese manufacturers the German group could partner with. VW has historically been linked to the state-owned car manufacturers SAIC and FAW, and Audi now also has a joint venture with SAIC to build electric cars for China. SAIC owns the former British brand MG Motor, selling cars that are directly competitive with VW in Europe.
However, a European partnership with the newly acquired development partner Xpeng would also be conceivable. The latter has already declared its readiness to produce in Europe. It is unclear whether VW could also join forces with a manufacturer in Europe that is not one of its current Chinese partners.

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