Volkswagen pushes EU aid to shift Chinese EV production to Europe

German officials say Europe should help relocate Chinese electric‑vehicle manufacturing to the continent, proposing higher import duties to pressure Chinese firms into joint ventures with Volkswagen. The plan, discussed by Saxony’s economy minister Dirk Panter, aims to keep factories running and protect up to 100,000 VW jobs threatened by recent closures of four plants.

Volkswagen’s CEO Oliver Blume is weighing options such as leasing factory space to Chinese rivals like BYD and Xpeng, while the group cuts costs and halves its model range. In 2025 VW expects to build 983,100 fully electric vehicles, only 11% of its total output of roughly 9 million cars, compared with Chinese leader BYD’s 2.2 million EVs and Tesla’s 1.6 million. VW has also increased its stake in Chinese battery maker Gotion High‑Tech to 33%, seeking a sodium‑ion battery edge, and is pursuing solid‑state battery partnerships in the US and China.