a growing number of German companies are pivoting to China
Since early 2024, several automakers and suppliers, including Ford, Stellantis, Volkswagen, ZF and Bosch, have announced layoffs or plant closures in Germany and other European countries.
Shrinking order books, rising energy and labor costs are undermining the region's industrial competitiveness. At the same time, German carmakers continue to trail their U.S. and Chinese rivals in the race to electrification.
TURNING EASTWARD FOR OPPORTUNITIES
Amid growing uncertainty and shifting trade policies in transatlantic markets, a growing number of German companies are pivoting to China, drawn by its regulatory stability and clearer growth outlook. Through local production, technology partnerships and targeted investment, automakers are seeking to strengthen their position in Asia and accelerate structural transformation.
Arno Antlitz, Volkswagen's chief finance officer and chief operating officer, recently voiced strong confidence in expanding local platforms and battery partnerships in the Chinese market.
BMW also announced a collaboration with Chinese tech firm Momenta to co-develop next-generation driver assistance systems tailored for local consumers.