Chinese carmaker Chery is close to a deal to assemble cars at one of Volkswagen AG's plants in Germany, Automotive News Europe reported, citing an informed source.

According to Automotive News, Chery is interested in assembling cars under the new Lepas brand. Although a Chery spokesman confirmed that talks on launching production in Germany are indeed underway, he did not specify with which partner. Chery International deputy general manager Charlie Zhang said in an interview with Automotive News Europe on 26 April that the situation in Germany is "very difficult" and the company needs to carefully study the planned production model.

Zhang said Chery wants more precise information on production costs, logistics, dealing with labour unions and compliance with local laws. Volkswagen declined to comment on the rumours.

Reuters reported in January that several Chinese carmakers were considering buying or leasing two VW plants - in Dresden and Osnabrück - that the German auto giant plans to close as part of a cost-cutting programme. The arrival of a Chinese partner like Chery could ease tensions with labour unions while cutting duties for the company.

The assembly of Chery cars in Europe has already started - last year in the framework of cooperation with the Spanish company Ebro at the former Nissan plant in Barcelona. The Ebro S700 model based on the Tiggo 7 is produced there, which is delivered from China as partially disassembled kits: the body is already painted, the interior is installed, and the suspension, transmission and wheels are assembled on site.

Sales of Lepas cars will start in Europe in 2026 with three models

The new Lepas brand, unveiled on 25 April, is based on modified versions of Chery's popular Tiggo crossovers. Two compact SUVs and one mid-size SUV will be available in Europe. Each model will be available in electric, hybrid and petrol versions.

Source: Autonews

Евгений Ушаков
Evgenii Ushakov
15 years driving