- Volkswagen plans to shift China-developed ID. UNYX models to German factories to boost plant utilization and protect jobs.
- The ID. UNYX 07 and 08 are frontrunners for German assembly, reversing VW’s long-standing Germany‑first development model.
- German production could deepen VW’s tie with XPeng and enable shared European assembly for both brands.
Volkswagen is considering producing vehicles developed by its China-based engineering team at German factories, aiming to improve utilization at underused plants, increase production and safeguard domestic jobs, according to a report by Autocar.
The proposal has reportedly received backing from the government of Lower Saxony, Volkswagen’s second-largest shareholder, but remains under internal review and has yet to receive final approval.
If implemented, the move would represent a reversal of Volkswagen’s long-established product development model.
Historically, the automaker has developed vehicles in Germany before introducing them to China for local production and sales.
Under the new approach, vehicles conceived and engineered in China could be manufactured in Germany and supplied to European markets.
Volkswagen is currently restructuring its German manufacturing operations in response to slowing demand in Europe, shrinking profitability and intensifying competition from Chinese automakers.
In April, Volkswagen Group CEO Oliver Blume said the company planned to manufacture new models developed by its China team in Germany.
The group has also announced a broad restructuring program, including streamlining its product portfolio, improving factory efficiency and reducing up to 100,000 jobs.
According to sources at Volkswagen’s Wolfsburg headquarters, the ID. UNYX lineup is the leading candidate for German production.
Autocar reported that the first model likely to be assembled in Germany is the ID. UNYX 07, Volkswagen’s first production vehicle built on the China-exclusive China Electrical Architecture (CEA) platform.
The ID. UNYX 08 SUV is also under consideration. A Volkswagen executive said the model is expected to assume the role previously held by the Touareg in the company’s global SUV lineup.
A third candidate is the higher-end ID. UNYX 09, which is scheduled to join Volkswagen’s China lineup in October.
According to filings with China’s MIIT, the ID. UNYX 09 is a 5,081-mm B-segment sedan available in both rear-wheel-drive and all-wheel-drive variants.
Like the ID. UNYX 08, the ID. UNYX 09 is equipped with CATL battery and Volkswagen’s latest AI-powered driver assistance system developed specifically for the Chinese market.
The ID. UNYX series is a key outcome of Volkswagen’s localization strategy in China.
Several models have been jointly developed by Volkswagen and XPeng to strengthen Volkswagen’s competitiveness in China’s rapidly expanding new energy vehicle market.
As domestic Chinese brands continue to gain market share, Volkswagen has faced mounting pressure in China, making localized product development a central pillar of its strategy.
Should German production of the ID. UNYX series proceed, it could further deepen Volkswagen’s partnership with XPeng.
Previous reports have suggested the two companies have discussed potential acquisitions involving European manufacturing facilities.
Once German production capacity is established, XPeng could potentially leverage the same assembly lines to manufacture its own branded vehicles alongside Volkswagen models for sale in Europe.
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