Automotive giant Volkswagen (VW) is reportedly considering a strategic solution to alleviate excess production capacity at its European plants. As part of its efforts, the company may be looking to leverage its stake in Chinese electric vehicle (EV) manufacturer Xpeng to expand the latter's presence in the European market. This move could potentially address the issue of oversupply at VW's European facilities, while also capitalizing on the growing demand for electric vehicles in the region. Industry insiders are watching closely to see how VW's plans unfold, as the company seeks to navigate the complex landscape of the European automotive market.
VW, which owns a stake in Xpeng, has previously said it would explore opportunities for its Chinese partners in Europe to address excess capacity at its plants.
