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By Christina Amann and Rachel More<\/p>\n
BERLIN, May 11 (Reuters) – Germany’s powerful IG Metall union is not opposed to Volkswagen potentially opening under-used plants to Chinese automakers but believes \u200cany such move should be assessed very carefully, a union spokesperson told Reuters on \u200cMonday.<\/p>\n
“We do not reject such ideas outright. Each specific case must be carefully evaluated,” the spokesperson said.<\/p>\n
“However, it is crucial \u200bthat they complement Volkswagen’s independent industrial strategy rather than replace it, and under no circumstances should they take the place of planned investments and vehicle projects,” the person added.<\/p>\n
Volkswagen CEO Oliver Blume is working to cut costs further at the sprawling German auto group, with Chinese partnerships emerging as one \u200coption to avoid closures of under-used \u2060plants in Europe.<\/p>\n
ZWICKAU COULD BE CANDIDATE FOR CHINA DEAL<\/p>\n
Local politicians have also signalled openness to such partnerships as German industry grapples with weak demand and high \u2060costs, while Chinese players such as BYD and Geely look to expand in Europe.<\/p>\n
The state economy minister of Saxony, Dirk Panter, said in a newspaper interview on Monday that Volkswagen’s Zwickau plant in eastern \u200bGermany could \u200bbe a candidate for Chinese collaboration.<\/p>\n
“It is better to \u200bfurther develop industrial expertise at VW \u200cin Saxony and secure production than to fight a losing battle and lose value creation,” Panter of the centre-left SPD told the Bild newspaper.<\/p>\n
“We have to move with the times,” he said, calling China “an opportunity for Zwickau”.<\/p>\n
Volkswagen declined to comment on the report.<\/p>\n
Under a hard-won deal with unions in late 2024, Volkswagen agreed to cut 35,000 jobs in Germany while guaranteeing no plant closures in \u200cthe country.<\/p>\n
Blume has since vowed to ramp up cost-cutting after \u200bthe group’s operating profit more than halved last year \u200bas tariffs, Chinese competition and a halted \u200bshift to electric vehicles at sports car subsidiary Porsche eroded its margins.<\/p>\n
A spokesperson \u200cfor the Saxony state economy ministry said \u200bPanter is interested in \u200bleveraging Volkswagen’s existing joint ventures in China, for example its partnership with state-owned carmaker SAIC.<\/p>\n
Zwickau, Volkswagen’s first plant to transition fully to EV production, employed about 8,000 people as of \u200blate last year.<\/p>\n
It is currently \u200crunning at partial capacity, the ministry spokesperson said. Under Volkswagen’s 2024 agreement, production there \u200bis to be scaled back further in coming years.<\/p>\n
(Reporting by Christina Amann and Rachel \u200bMore. Editing by Matthias Williams and Mark Potter)<\/p>\n<\/p><\/div>\n