TECH

Volkswagen Urged to Build China-Developed Cars in Germany to Protect Jobs

Published: Jul. 1, 2026 3:42 a.m. GMT+8

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Volkswagen's headquarters in Wolfsburg, Germany, on June 5, 2026. Photo: IC

Volkswagen could build models developed in China at its German plants to improve factory utilization and protect jobs, Lower Saxony Premier Olaf Lies said, signaling political resistance to any renewed push for plant closures.

The comments add pressure on Volkswagen as Europe’s largest automaker weighs deeper restructuring after a sharp profit decline and growing competition from Chinese electric-vehicle makers.

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Lower Saxony Premier Olaf Lies suggests Volkswagen build Chinese-developed models in German plants to avoid closures and protect jobs.
Volkswagen faces financial pressure: operating profit fell 53.5% in 2025 to €8.87 billion, and 14.3% in Q1 2026 to €2.46 billion.
Manager Magazin reported a July 9 proposal to cut 100,000 jobs and close four German plants, triggering strong opposition.

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Who’s Who

Volkswagen: Volkswagen is considering building Chinese-developed models at its German plants to boost utilization and protect jobs, amid a sharp profit decline. It partners with Xpeng and SAIC to close technology gaps in EVs and software. Lower Saxony, a key shareholder, opposes plant closures and supports this strategy.

XPeng Inc.: XPeng Inc. is a Chinese electric-vehicle manufacturer collaborating with Volkswagen to close technology gaps and accelerate EV and software development. Volkswagen is considering producing Chinese-developed models, including those from XPeng, at its German plants to improve factory utilization and protect jobs amid declining profits.

SAIC Motor Co., Ltd.: SAIC Motor Co., Ltd. is a Chinese automaker partnering with Volkswagen to close technology gaps in electric vehicles and software. The collaboration aims to develop models that could be built in German plants to improve factory utilization and protect jobs, according to Lower Saxony Premier Olaf Lies.

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