German leaders warn Chinese automakers entering European factories

German political figures expressed concern over Chinese car manufacturers taking over production facilities in Europe. Chancellor Friedrich Merz cautioned that allowing Chinese firms to operate in German plants would be a temporary fix for overcapacity at companies like Volkswagen and could compromise control over data, supply chains and technology. In the European Parliament, MEP Elisabeth Dieringer argued that EU subsidy programs are inadvertently financing such takeovers, citing ongoing negotiations by BYD to acquire part of Volkswagen's "Gläserne Manufaktur" and similar moves by Chery, Geely and Dongfeng at former Nissan, Ford and other sites. She called for stricter eligibility rules for industrial aid, insisting that end‑assembly alone should not qualify a plant as European-produced. Both officials highlighted the risk of losing technological know‑how and the potential impact on jobs and domestic industry.