German automakers, including Mercedes-Benz, are exploring options for under-utilized factories amid weak demand and rising Chinese competition. One strategy involves allowing Chinese manufacturers to produce vehicles within these European facilities.
This partnership would allow Chinese firms to bypass potential European Union tariffs on imported electric vehicles. Executives are also considering repurposing idle capacity for defense industry production.
These discussions reflect the pressure on European manufacturers to adapt business models during the transition to electrification. While specific factory plans remain speculative, the move highlights a critical effort by Mercedes-Benz to maintain profitability.