Chinese brands are targeting Europe as a priority. Against all expectations, Volkswagen could help them develop on the Old Continent by importing models initially intended for China. For what ?
Volkswagen will soon expand its European electric range at a lower cost with new vehicles. The German giant’s trick is to directly import some of its models designed and manufactured in China. The maneuver is smart, because the brand will then be able to modernize its catalog with electric cars using Chinese bases that are much more technically efficient.
When Volkswagen takes inspiration from its Chinese rivals
Indeed, why not try to do like the Chinese brands by importing vehicles into Europe to make further inroads? This is all the more relevant as the group’s situation is favorable in China according to Oliver Blume, the brand’s CEO: “ the Volkswagen group (…) is a major player in the Chinese market, and (…) it benefits from the same opportunities as Chinese brands in terms of export ».
An unexpected strategy to save European factories
No arrival date has yet been communicated, but it is likely that these Chinese Volkswagens will arrive within a few years in Europe if everything goes as planned. Will the strategy be profitable or, on the contrary, risky? The brand has precisely clarified that the models likely to arrive here will not compete in any way with the European range.
New vehicles that will not overshadow the ID.3 Neo and ID.4
This is what Blume confirmed, explaining that his brand will not market “ only products intended for segments that are not present in Europe, which would therefore have no impact on European development. They are completely different cars “. So don’t expect a compact like the ID.3 Neo or an SUV like the ID.4. Volkswagen will aim much bigger so as not to interfere.
The German giant’s ingenious bet to circumvent the Chinese crisis
If customers will have more choice, the maneuver will above all allow the German brand to make the development of its Chinese models more profitable. By importing these into Europe, the manufacturer broadens its scope of action by not limiting ourselves exclusively to the Chinese market which is particularly competitive. Unsold items will thus be able to take the road to the Old Continent to have a second chance.
What will be the real impact on factories in difficulty?
But this could still cannibalize European models, especially since Volkswagen’s European factories are in great difficulty. There then comes Blume’s genius idea: to produce these Chinese cars for compensate for the drop in production in the factories concerned. “ We would carefully plan the segments we would invest in, which could then allow us to produce any of these models in these factories », he concludes.
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Source :
Auto Express
