VW to sell its high-tech Chinese models in Europe, maybe build them here too

Volkswagen is preparing to bring some of its Chinese-engineered and built models to Europe. The cars will plug any gaps in its future product range as the German giant goes through a vast restructuring process to reduce complexity and costs. 

Speaking on a half-yearly results call, Volkswagen Group CEO Oliver Blume said: “Volkswagen Group in China, we’re a China player, and with the market [as it is], it opens the same opportunities as Chinese brands when it comes to export.”

No specific timeline has been laid out yet, but this move will build on a larger plan to turn VW’s ‘In China For China’ program into a hub for markets in the eastern and southern hemispheres. The plan will also extend to offering certain Chinese models in Europe, although the German brand has been careful to emphasise that these will not include models which could overlap with European-designed or built cars already on sale. 

Blume continued by saying: “We would only bring products in segments which don’t have any European coverage, so it wouldn’t have any impact on European development. They’re completely different cars.”

Why would Volkswagen do this? 

The plan has two main benefits, the first being a chance to mitigate the toughening market conditions in China by diversifying into other less competitive markets, while also dealing with any potential oversupply. This is exactly what other Chinese brands are already doing, and as VW comes with an established global footprint, it already has a foundation to sell from. 

The second benefit is a chance to offer some of its cutting-edge models in Europe, covering more segments without doubling up on R&D across regions. However, VW leadership are aware of the optics, especially as rumours continue to swirl about cutting European production to a point where plant closures might be inevitable.

Building Chinese VWs in Europe

Which is where part two of this idea comes into play as Blume also confirmed there’s scope to build these Chinese-engineered models in European factories to help keep the lights switched on. 

Blume was bullish about the way VW goes about this, telling us: “First export, then check the response in the market. But we would carefully plan which segments we’d enter, which could then open up the opportunity to build any of these models in those plants.”

As such, there’s little chance that any of VW’s small to medium sized models offered in the Chinese market would be sold here, instead it’ll be larger and more profitable lines such as the popular ID.Era 7X. This new model has already been considered a hit in the Chinese market, shooting right to the top of the popular full-sized range-extender SUV class. 

It would also make sense for European consumption as these range-extender style vehicles could meet the demand for models with an internal combustion engine before an ICE ban comes into force. 

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