Volkswagen shareholder proposes shifting China-developed models to Germany to protect jobs
A key Volkswagen shareholder has suggested that the company could help safeguard jobs in Germany by producing car models domestically that are currently developed in China, amid growing uncertainty over the future of the automaker’s local manufacturing footprint.
The proposal was made by Olaf Lies, premier of the German state of Lower Saxony, a major shareholder in Volkswagen, according to comments reported by German news agency DPA.
Automotive sector under restructuring pressure
The remarks come at a sensitive moment for Volkswagen, which is reportedly considering significant restructuring measures, including the possible closure of several German factories and job reductions that could reach tens of thousands of positions.
The company has faced mounting pressure in recent months due to shifting global demand, rising production costs in Europe and increasing competition from both traditional rivals and new electric vehicle manufacturers.
Balancing global production strategies
The suggestion to relocate production of China-developed models to Germany reflects broader debates within the automotive industry about balancing global efficiency with domestic industrial policy priorities.
Germany’s automotive sector remains a cornerstone of its manufacturing economy, but it is undergoing a major transformation driven by electrification, digitalisation and global supply chain realignment.
Political and industrial stakes remain high
Lower Saxony holds a significant stake in Volkswagen, giving regional leaders influence over strategic decisions. Policymakers are increasingly vocal about protecting industrial capacity and employment amid ongoing restructuring discussions.
Analysts say any production shift would depend on cost competitiveness, supply chain feasibility and alignment with Volkswagen’s long-term platform strategy.
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