By bno - Taipei Bureau Volkswagen is considering allowing Chinese carmakers to take over its surplus production lines in Europe as it faces declining demand and increasing competition from the same companies looking to expand their presence in the region.

Volkswagen may have an answer to its China woes in the form of a joint venture with XPeng, a Chinese automotive manufacturer. The two companies are working on new architecture that will underpin VW’s Chinese EVs. The first models should hit the market in 2026, and at least one will be an SUV.

BERLIN (Reuters) - Volkswagen's CEO has spoken to the carmaker's Chinese joint venture partners about their interest in investing in Europe but was not aware of any concrete decisions on their part, a VW spokesperson said on Tuesday.

Car giant VW to wind down production at 2 factories; China could buy factories for foothold in Germany. Read more at straitstimes.com.

Volkswagen has confirmed that it is considering selling some of its German car factories to Chinese manufacturers as part of a cost-cutting plan to save billions. The move comes as Volkswagen looks to restructure its business.

The company kickstarted development of China Electronic Architecture (CEA), a joint project of Volkswagen China Technology Company, Volkswagen's software unit CARIAD and XPENG. The CEA will develop a highly modern and cost-efficient electrical architecture that will be used in their vehicles from 2026.

Volkswagen ( OTCPK:VLKAF) ( OTCPK:VWAGY) has discussed with Chinese partners such as SAIC, FAW Group, JAC Motors, and XPeng ( NYSE: XPEV) the possibility of the companies investing in plants in Germany, according to Chief Executive Oliver Blume.

All Porsche and Audi EVs are currently built outside the US, making them particularly exposed to an increase in tariffs. The Audi Q5 is built in Mexico, while Porsche EV models are produced in Europe.

China is said to be eyeing up German unwanted car factories, in a bid to grow its influence within the heart of European manufacturing. Chinese officials and automotive industry players are reported to be particularly interested in buying Volkswagen sites ...

It was just past 11 on a freezing December morning on the outskirts of Brussels, but already workers at the city's Audi factory were cracking open frosty cans of beer. They had just finished a long night shift - not on one of the production lines at a plant that has produced 8 million cars since 1949,

Watch this explainer from Wendover Productions to dig into just how BYD became the behemoth it is, and how Volkswagen rested on its laurels a bit too long. VW was the first foreign automaker to produce vehicles in China way back in 1983 and it has long billed China as its biggest and most reliable market, but that era is over. BYD killed it.

Volkswagen is exploring the possibility of sharing its excess production lines in Europe with Chinese EV makers.