Story perspectives

European carmakers pursue Chinese partnerships, defense production

6/8/2026

Summary

Story summary

European carmakers are weighing joint production with Chinese firms and defence contractors to keep idle factories operational.
Volkswagen and Stellantis have confirmed talks about hosting Chinese vehicle assembly in Europe, though Volkswagen says no production plans yet.
Chinese brands BYD, MG and Chery now represent roughly nine percent of EU vehicle sales.
German authorities have discussed converting Mercedes-Benz’s Ludwigsfelde and Volkswagen’s Osnabrück plants into military vehicle production.

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Story summary

European carmakers are weighing joint production with Chinese firms and defence contractors to keep idle factories operational.
Volkswagen and Stellantis have confirmed talks about hosting Chinese vehicle assembly in Europe, though Volkswagen says no production plans yet.
Chinese brands BYD, MG and Chery now represent roughly nine percent of EU vehicle sales.
German authorities have discussed converting Mercedes-Benz’s Ludwigsfelde and Volkswagen’s Osnabrück plants into military vehicle production.