China's Chery wants to assemble cars at Volkswagen's plant in Germany - mass media
Chinese carmaker Chery is close to a deal to assemble cars at one of Volkswagen AG's plants in Germany, Automotive News Europe reported, citing an informed source.
Here's What We Know
Chery is reportedly interested in assembling cars under the new Lepas brand. While a Chery spokesperson confirmed that talks are indeed underway to launch production in Germany, he did not specify with which partner. Chery International deputy general manager Charlie Zhang said in an interview with Automotive News Europe on 26 April that the situation in Germany is "very difficult" and the company needs to carefully study the planned production model.
According to Zhang, Chery wants more accurate information on production costs, logistics, labour union relations and compliance with local laws.
Reuters reported in January that several Chinese automakers were considering buying or leasing two VW plants - in Dresden and Osnabrück - that the German auto giant plans to close as part of a cost-cutting programme. The arrival of a Chinese partner like Chery could smooth tensions with labour unions while cutting duties for the company.
Volkswagen declined to comment on the rumours.
Lepas will launch in Europe in 2026 with three models
The new Lepas brand, unveiled on 25 April, is based on modified versions of Chery's popular Tiggo crossovers. Two compact SUVs and one mid-size SUV will be available in Europe. Each model will be available in electric, hybrid and petrol versions.
Assembly of Chery cars in Europe has already started - last year in the framework of cooperation with the Spanish company Ebro at the former Nissan plant in Barcelona. The Ebro S700 model based on the Tiggo 7 is produced there, which is delivered from China in the form of semi-assembled kits: the body is already painted, the interior is installed, and the suspension, transmission and wheels are assembled on site.
Chery intends to further modernise the Barcelona site to increase production of the hybrid Tiggo and add electric versions of models for its Omoda and Jaecoo brands. The facility has a potential capacity of up to 200,000 vehicles per year. A large-scale launch is planned by the end of 2025.
Moving electric vehicle production to Europe will allow Chery to partially offset the effect of new import duties imposed by the European Union against Chinese EVs due to China's "state subsidisation" of the industry.
Source: Automotive News
