German union cautiously supports Volkswagen allowing Chinese automakers to utilize idle factories

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Germany’s powerful union IG Metall spokesperson told Reuters that they do not oppose Volkswagen considering opening up underutilized factories to Chinese automakers, but believe such measures must be carefully evaluated.

The spokesperson said, “We do not outright reject this kind of idea. Each specific plan must be carefully assessed; however, it is crucial that these initiatives complement Volkswagen’s independent industrial strategy rather than replace it; in any case, they should not substitute planned investments and vehicle projects.”

Volkswagen CEO Oliver Blume is working to further cut the group’s costs, and establishing partnerships with Chinese companies has become an option to avoid closing underperforming factories in Europe.

As demand in German industry weakens and costs remain high, local politicians are also open to such collaborations. Chinese automakers like BYD and Geely are seeking to expand their presence in Europe.

Saxony’s Minister of Economy, Dirk Panter, told a newspaper that Volkswagen’s factory in Zwickau, eastern Germany, could be a candidate for cooperation with China.

Volkswagen declined to comment on the report.

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