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German leader open to Chinese takeover of auto plants; cooperation may ease industry woes: expert

2026-07-17 08:59   环球时报网英文版

  A view of the Volkswagen plant in Zwickau, Saxony. According to media reports, up to 100,000 jobs are at risk. Photo: VCG

  German Chancellor Friedrich Merz signaled Wednesday that he was not opposed to Chinese carmakers taking over struggling German auto plants, but cautioned it could not be a long-term solution for the industry"s problems, the AFP reported.

  Merz"s comments came as Germany"s flagship auto sector is struggling with issues including weak demand in Europe, US tariffs and fierce competition from China, the report said.

  Chinese analyst and industry expert said on Thursday that Merz"s comments reflected a growing consensus among German political and industrial circles toward a warmer stance on Chinese investment amid fierce competition and potential cooperation with Chinese auto manufacturers could hold the key to addressing some of the long-term structural issues faced by the German auto industry, although the German side needs to abandon zero-sum mentality and wholeheartedly embrace the idea of win-win cooperation.

  The comments by the German chancellor came as German car giant Volkswagen"s woes continue. Volkswagen CEO Oliver Blume told staff on Monday that up to another 50,000 job cuts were on the table on top of the same amount already agreed, according to AFP.

  With many of the country"s car plants operating below capacity, some have suggested fast-growing Chinese manufacturers could use some of their production lines or take them over entirely.

  Asked about potential Chinese takeovers of German car factories, Merz responded: "The individual companies have to decide whether they want this or not." However, Merz added: "I see it as an emergency solution, not as a solution to our own structural problems," according to the AFP report.

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