VW's German Factories Could Soon Manufacture Chinese Cars for the European Market | Carscoops

      The Chinese automaker is looking to extend its reach beyond its domestic market, with ambitions to manufacture vehicles from various brands in Europe.

      Chery, which ranks as China’s fourth-largest automaker, recorded global sales of 2,603,916 vehicles in 2024. In its pursuit to broaden its market presence outside China, the company is focusing on Europe.

      Chery is currently in discussions to acquire two Volkswagen plants in Germany, although no agreement has been finalized yet.

      There is a growing awareness that Chinese automakers are seeking a larger share of the European market, and one of these companies may soon establish a presence in the core of Germany’s automotive industry.

      Earlier this year, reports indicated that several Chinese manufacturers expressed interest in purchasing or leasing two Volkswagen facilities—one located in Dresden and the other in Osnabruck—both scheduled to close as part of Volkswagen’s ongoing cost-reduction strategy.

      Chery, which also sold vehicles through partnerships, including with Jaguar Land Rover, is reportedly nearing a deal to take over the two plants as it aims to enter the European market.

      Chery is considering Germany for its local manufacturing operations and has confirmed that it is in advanced discussions, though it has not disclosed whether it is in negotiations with Volkswagen. Chery International’s vice president, Charlie Zhang, stated to Autonews Europe that a final decision would be reached after addressing all potential concerns. He emphasized the necessity of reviewing the feasibility plan, given the complexities involved in the German market, including regulatory requirements, labor unions, supply chains, and costs.

      Should an agreement to acquire the two German plants be reached, Chery plans to produce models for its newly launched Lepas brand, which debuted on April 2. This brand will offer modified versions of Chery’s Tiggo lineup for the global market. The European-made lineup is expected to feature two compact SUVs and one midsize SUV available with combustion, plug-in hybrid, or all-electric powertrains.

      Chery is already familiar with manufacturing vehicles in Europe, having been assembling cars at a former Nissan plant in Barcelona, Spain, in collaboration with a local company called Ebro since 2024. Zhang noted that Chery is preparing to enhance this facility to boost the production of the Tiggo PHEV SUV and introduce electric versions of the Omoda and Jaecoo brands for the European market.

      By diversifying its production across various European locations, Chery seems to be strategically positioning itself to not only circumvent trade barriers but also better align its products with local consumer preferences.

      Chery possesses a variety of brands, including iCar, Luxeed, and Lepas, among others.