The European Union’s additional tariffs on Chinese electric vehicles have not deterred China's ambitions in Europe. Instead, Chinese automakers are pressing ahead with bold plans to expand their presence in the region. A key move in this strategy is establishing manufacturing operations within Germany, Europe’s industrial powerhouse. Chinese auto giant Chery has reportedly entered advanced negotiations to acquire or lease two Volkswagen plants in Germany.
Earlier this year, reports surfaced that Chery and other Chinese manufacturers were eyeing Volkswagen’s Dresden and Osnabrück factories—facilities under review as part of Volkswagen’s cost-cutting measures. Now, Chery is said to be close to finalizing a deal to take over these plants. If successful, the company intends to use the sites to produce vehicles under its newly unveiled sub-brand, Lepas.
While confirming its intentions to begin production in Germany, Chery has not clarified whether the talks involve Volkswagen directly. Speaking to Autonews Europe, Chery International Vice President Charlie Zhang emphasized that no final decision had been made yet. “We need to assess the situation in Germany carefully because it’s quite complex,” Zhang stated. He added that the company is currently analyzing regulatory requirements, labor union dynamics, supply chains, and overall costs.
The Lepas brand will feature adapted versions of Chery’s Tiggo series for international markets. The initial lineup will include two compact SUVs and one midsize SUV, available in internal combustion, plug-in hybrid, and fully electric variants. This strategic move underlines Chery’s commitment to becoming a major player in the European automotive landscape.