German carmakers weigh China, defense tie-ups for idle plants
The Glovis Spring car transport ship is guided to a berth by tugboats as construction machinery vehicles and cars (foreground) wait to be loaded for export at Yantai Port, in China's eastern Shandong province on June 2, 2026. (Photo by CN-STR / AFP)
Germany's beleaguered carmakers are desperately seeking solutions for their under-used factories, with speculation swirling that Chinese manufacturers or weapons makers could move in.
Across Europe, carmakers are in trouble due to growing Chinese competition, weak demand and a choppy transition to electric vehicles (EVs), leaving many plants operating way below capacity.
One solution is to open up factories for Chinese manufacturers to produce cars in Europe as they seek to get around EU tariffs on EVs, a step recently taken by Stellantis which owns Jeep and Fiat.
