Volkswagen may shift production of some China-developed vehicles to Germany as the automaker looks for ways to protect jobs and improve factory utilization at its domestic plants.
Olaf Lies, premier of Lower Saxony, which holds a 20% voting stake in Volkswagen, said producing vehicles currently made in China at German facilities could help secure thousands of jobs and strengthen manufacturing capacity.
"If we produced vehicles here that we currently make in China, we could stabilize capacity utilization of our plants," Lies said in comments to German media.
The proposal comes as Volkswagen faces growing pressure from multiple fronts. The company is dealing with intense competition from Chinese electric vehicle manufacturers, weaker demand across Europe, and rising costs that have placed its traditional business model under strain.
Recent reports suggest Volkswagen is considering closing four German factories and cutting up to 100,000 jobs as part of a major restructuring effort. Such moves have sparked concerns about the future of Germany's automotive industry and employment levels.
Lower Saxony, home to Volkswagen's headquarters and five major production facilities, has become increasingly vocal about finding solutions that preserve manufacturing jobs within Germany.
Meanwhile, Porsche, a Volkswagen subsidiary, is reportedly considering moving production of its Cayenne SUV from Slovakia to its Leipzig plant in Germany. Such a move could improve factory utilization and support local employment.
The debate highlights a major challenge facing European automakers: balancing lower-cost production in overseas markets with the need to maintain domestic manufacturing and protect jobs.
As Volkswagen reshapes its global operations, decisions about where future models are built could play a crucial role in determining the company's workforce and manufacturing footprint in Germany for years to come.
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