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The Markets
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The Markets
by Proactive
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Manufacturing & engineering

Volkswagen looks at sharing plants with Chinese rivals to offset slump

Volkswagen Group (XETRA:VOW) is prepared to share production facilities with Chinese rivals in an attempt to offer a slump in car demand, its chief executive has said.

Gernot Döllner told the FT that deals with Chinese electric car companies are “thinkable.”

David Powels, VW’s chief financial officer added: “We’re open for any discussion on any topic with any partner. In a dynamic world, you have to keep all options open.”

Volkswagen had threatened to close at least two sites in Germany until it struck an eleventh-hour deal with unions to keep its sites open.

Unions agreed to an axing of bonus payments and the loss of more than 35,000 jobs by 2030 in return for a reduction in production across its sites rather than closures.

Volkswagen said it hoped to save €15bn (£12.4bn) a year in wages from the deal.

Chinese car makers have been accused of huge state subsidies to produce electric cars at a fraction of European rivals, prompting the EU to impose tariffs on imports last year.

Demand for EVs across Europe has been weak generally, however, with their adoption well below original forecasts.

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