nVolkswagen CEO Oliver Blume has confirmed that the automaker is in talks with its Chinese joint venture partners about potential investments in Europe. Speaking to Reuters in Berlin, Blume emphasized the importance of global trade and welcomed the idea of foreign companies investing in the region. “We stand for global world trade, and it is indeed always positive to assess when companies invest in our region in Europe,” he said. However, he clarified that while discussions are ongoing, no concrete decisions have been made.”We have close partnerships in China, joint venture partners, and of course there are also conversations, but no concrete decisions,” blume added. “Of course, something like this has to be prepared carefully.”
The talks come amid growing interest from Chinese carmakers in taking over Volkswagen’s german plants that the company may no longer need in the long term.As an example, the Osnabrück plant, which was at risk of closure, has been saved through concessions made in a recent collective agreement with the IG Metall union. Volkswagen has confirmed plans for the further use of the location, but has refrained from commenting on other speculative options.
The IG Metall union has been vocal about the need for foreign car manufacturers to invest in European production facilities if they wish to sell cars in the region. “If you want to sell cars in Europe, you should also build your own production and ensure employment,” the union stated. They argue that Europe should require foreign providers to invest in local production, thereby supporting the regional economy.
Blume also addressed the challenges Volkswagen faces in China, the world’s largest automotive market. “The competition is immense,many new automotive companies have come onto the market,” he said. While Volkswagen is still focused on combustion engines and hybrids, the company aims to become competitive in the electric vehicle (EV) sector in the medium term. “We are still with the combustion and hybrids,” Blume noted, but he remains optimistic about the future of Volkswagen in China.
Along with its focus on China, Volkswagen is also navigating the complexities of U.S. trade policy under President Donald Trump. The company has significant investments in North America,including factories,partnerships,software,and battery production. “The Volkswagen Group has a strong pillar in the United States,” Blume said. “I always represent the position there, who is involved in regions, invested there, should also benefit from cheap customs sets.” However, Volkswagen is also concerned about the potential impact of proposed tariffs on its operations in Mexico.
| Key Points | Details |
|---|---|
| Talks with Chinese Partners | Volkswagen is discussing potential investments in Europe with its Chinese joint venture partners. |
| Osnabrück Plant | The plant was saved from closure through a collective agreement with IG Metall. |
| Competition in China | Volkswagen faces intense competition in China but aims to be competitive in the EV market. |
| U.S.Trade Policy | Volkswagen is concerned about the impact of proposed tariffs on its operations in Mexico. |
As Volkswagen continues to navigate these challenges, the company remains committed to its global strategy, balancing its investments in Europe, China, and North America. The outcome of these talks with Chinese partners could have significant implications for the future of Volkswagen’s production facilities and its position in the global automotive market.
