German Chancellor Merz says Chinese takeover of auto plants is only a stopgap

German Chancellor Friedrich Merz told reporters he does not oppose Chinese automobile manufacturers taking over struggling German car factories, but described such a move as an emergency solution, not a long‑term answer to the industry’s structural problems. He warned that relying on Chinese firms could shift dependencies in supply chains and data access. The remarks come as Germany’s auto sector battles weak European demand, US tariff pressures and intense competition from China, leaving many plants under‑utilised and prompting Volkswagen CEO Oliver Blume to flag possible cuts of up to 50,000 jobs. Merz also criticised China’s currency policy, alleging the yuan is undervalued by 25‑30 % and gives Chinese exports an unfair price advantage. EU lawmaker Elisabeth Dieringer echoed concerns, saying EU subsidies unintentionally fund Chinese takeovers of European plants and risk de‑industrialisation. The discussion highlights the dilemma of using foreign capacity to keep factories running while seeking sustainable, European‑based solutions.