According to AFP, on July 15 local time, German Chancellor Merz said he had no objection to Chinese automakers taking over Germany's troubled automobile factories. However, he noted that this could only serve as an 'emergency measure' and would not fundamentally solve the structural problems faced by Germany's automobile industry.
Reports indicate that in recent years, the German automotive industry has been affected by multiple factors, including weak market demand in Europe, US tariff policies, and fierce competition from Chinese automakers. The operating pressure continues to increase. German car manufacturer Volkswagen announced this week that, on top of the already agreed-upon layoffs of about 50,000 employees, the company may still cut up to 50,000 more jobs.
Due to insufficient capacity utilization at many German automobile factories, there are proposals that rapidly growing Chinese automobile manufacturers could use some of the production lines, or even take over the operation of some factories. As Chinese companies accelerate their expansion into the European market, Chinese automakers including BYD are actively seeking local production bases.
When asked whether Chinese companies might acquire German automobile factories, Mertz replied, “Each company needs to decide for itself whether they want to do so.” “I think this is an emergency solution, not a way to address our structural problems.”
For a long time, German automakers have been complaining about high local production costs and cumbersome administrative regulations, which weaken their competitiveness. On the other hand, critics argue that German car manufacturers themselves need to carry out reforms to improve operational efficiency.
In fact, not only German automakers but also other European car manufacturers have been strengthening their cooperation with Chinese companies in recent years. In May this year, the Stellantis group announced that it has established a joint venture with Dongfeng Automobile to jointly carry out production, manufacturing, sales, and engineering operations on the European continent.
