Chery sets its sights on Volkswagen and wants its factories to produce its cars

Chinese manufacturers are trying to begin manufacturing their models in Europe, in order to avoid the tariffs imposed by the European Commission and cut manufacturing costs. Chery is working on this, and it is known to be interested in the plant in the Zona Franca de Barcelona where the Ebro models are being built, but it does not want to stop there and is looking for new plants in several European countries to increase its production in Europe.

A rumor that has been growing over the last few weeks is that the Chinese manufacturer could buy or lease two of Volkswagen’s plants in Germany, to produce cars for that part of the continent. The Volkswagen plants, located in Dresden and Osnabrück, are close to being closed by the German manufacturer and could thus pass into the ownership of the Chinese company.

It is not the only one interested in operating these two plants, but it is said that the deal between Volkswagen and Chery to acquire or lease the two plants is quite advanced and could be made public in the coming days. This would allow Chery to establish itself in the European market with its brands and increase its market share exponentially.

For now, Chery has confirmed that it is prepared to enter the German market, although it has not confirmed that it will do so with these two plants. According to the manufacturer, it is evaluating all supply chains, costs and other variables that will determine the location of its new plants in Germany, so the decision could be made in a short time.

The German plants will house production of the Lepas models, the new brand Chery presented a few weeks ago. It also expects to incorporate new variants of Tiggo models, aimed not only at the European market but also at the global market. Among these models, two compact SUVs and one mid-size stand out, all three with combustion, hybrid and fully electric engines.

With regard to the Barcelona plant, Chery expects to inject a significant investment into modernizing the factory. Its goal is to prepare it to produce the Tiggo PHEV SUV and add electric versions of the Jaecoo and Omoda models for sale in Europe.