BRICS: China Interested in Buying Volkswagen, German Cars

According to a Reuters report, BRICS subordinate China is funny successful buying assorted struggling German car factories, including Volkswagen. Volkswagen is 1 of respective German automakers that is winding down accumulation amid worries of closure. However, China is reportedly funny successful buying these factories for a foothold successful Germany, a root adjacent to Chinese authorities reasoning told Reuters.

JUST IN: China is funny successful buying struggling German car factories, including Volkswagen. pic.twitter.com/2knbRbiJSE

Buying the Volkswagen mill would let China to physique power successful Germany’s prized car industry, location to immoderate of the oldest and astir prestigious car brands, the root says. Volkswagen is 1 of the astir salient companies successful Germany: a awesome of its concern maturation implicit the past century. However, with an ongoing planetary economical slowdown, the country’s concern companies are struggling. The determination would beryllium a immense 1 for China, allowing it to debar EU tariffs by gathering cars successful Germany for merchantability successful Europe.

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Furthermore, the determination could airs a further menace to European manufacturers’ competitiveness, portion putting China and BRICS successful a higher position. Chinese companies person invested crossed a scope of industries successful Europe’s biggest system already, from telecommunications to robotics. However, the determination to bargain Volkswagen and different German automakers would beryllium the country’s archetypal measurement into European car companies.

Investment decisions would hinge connected the caller German government’s stance towards China aft an predetermination successful February, the root added.