German union urges caution on allowing Chinese carmakers to use VW plants (updated)

Volkswagen AG

11/05/2026 14:03

Adds background, state minister in newspaper interview

BERLIN, May 11 (Reuters) - Germany's powerful IG Metall union is not opposed to Volkswagen VOWG_p.DE potentially opening under-used plants to Chinese automakers, but believes any such move should be assessed very carefully, a union spokesperson told Reuters on Monday.

"We do not reject such ideas outright. Each specific case must be carefully evaluated," the spokesperson said.

"However, it is crucial that they complement Volkswagen's independent industrial strategy rather than replace it, and under no circumstances should they take the place of planned investments and vehicle projects," the person added.

Volkswagen CEO Oliver Blume is working to cut costs further at the sprawling German auto group, with Chinese partnerships emerging as one option to avoid closures of under-used plants in Europe.

Local politicians have also signalled openness to such partnerships as German industry grapples with weak demand and high costs, while Chinese players such as BYD 002594.SZ and Geely look to expand in Europe.

The state economy minister of Saxony, Dirk Panter, said in a newspaper interview on Monday that Volkswagen's Zwickau plant in eastern Germany could be a candidate for Chinese collaboration.

"It is better to further develop industrial expertise at VW in Saxony and secure production than to fight a losing battle and lose value creation," Panter of the centre-left SPD told the Bild newspaper.

"We have to move with the times," he said, calling China "an opportunity for Zwickau".

Volkswagen declined to comment on the report.

 (Reporting by Christina Amann and Rachel More. Editing by Matthias Williams and Mark Potter)

 ((rachel.more@thomsonreuters.com;))