At the moment Volkswagen is not in negotiations with Chinese manufacturers regarding an alleged overcapacity of European plants. This was stated by CEO Oliver Blume. However, the issue remains on the table: the CEO of the German giant said that the company must address the problem to maintain its competitiveness, emphasizing that currently there are no plans or discussions with Chinese parties. The general workers’ assembly in Wolfsburg took place in a context marked by growing speculation about the future of the plants in Germany, fueled by declining profits, weak demand, and increasingly intense competition.
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Is Volkswagen negotiating with the Chinese?
Meanwhile, Blume recalled the efforts already made to strengthen the group in the face of a complex market: three years of austerity measures, including 50,000 job cuts in Germany, as well as interventions on brands like Audi and Porsche. However, Reuters reports, he warned about the possibility of a return to pre-pandemic sales levels in Europe, highlighting how the group’s traditional model, based for decades on exports from Germany to the world, is changing. In this scenario, the need to localize production in strategic markets such as China becomes more central, where Volkswagen operates through joint ventures with local partners.
But the problem remains
Alongside management statements, Volkswagen is also working to reduce costs and manage long-term uncertainty. The company claims to have cut costs by over 20% on average in its plants over the past year and, at the same time, is proceeding with the sale of the Osnabrück plant to a potential partner linked to defense. However, the works council strongly rejects the narrative of a company in trouble or “up for acquisition.” Chairwoman Daniela Cavallo has called to stop speculation about the future of the plants, denouncing the impression that Volkswagen needs to be “saved” and urging management to focus on product success rather than on a continuous debate about possible closures or alternative uses of industrial sites.
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