https://nordictimes.com/economy/reports-chinese-firms-interested-in-volkswagens-struggling-factories/

Economy

Reports: Chinese firms interested in Volkswagen’s struggling factories

Published 17 January 2025

– By Editorial Staff

Photo: Pixabay

Chinese companies are showing interest in buying up Volkswagen’s factories in Germany, a strategic move that could potentially transform the automotive industry in Europe. The investments would strengthen China’s presence in European vehicle production, but also raise concerns about the future of the industry and political reactions.

Volkswagen plans to close its factories in Dresden and Osnabrück by 2027 – as part of the company’s fight to cut costs and face stiffening competition from Chinese electric car makers.

Volkswagen might consider selling the Osnabrück factory to a Chinese buyer, according to a person familiar with the company’s deliberations who spoke to Reuters.

However, a Volkswagen spokesperson emphasizes that “We are committed to finding a continued use for the site. The goal must be a viable solution that takes into account the interests of the company and employees”.

Could bypass car tariffs

Chinese investment in Germany has in the past included sectors such as telecommunications and robotics, but establishment in traditional car manufacturing has so far failed to materialize.

The Chinese are interested in car manufacturing in Europe in general, potentially avoiding EU tariffs on imported electric cars and strengthening their market presence, as several manufacturers have already done. For example, BYD is building plants in Hungary and Turkey, while Chery plans to start manufacturing at a former Nissan plant in Spain. Leapmotor has also considered using a factory in Germany for its production.

Reuters also reports that a source close to the Chinese government said that Chinese companies are actively exploring opportunities to buy factories that Volkswagen plans to close.

Volkswagen Wolfsburg — Volkswagen’s crown jewel: Wolfsburg Volkswagen Plant. Photo: High Contrast/CC BY 2.0

A spokesman for China’s Foreign Ministry urged Germany to welcome Chinese investment.

– China has introduced a series of opening-up measures to create new business opportunities for foreign companies … It is hoped that the German side will also uphold an open mind, (and) provide a fair, just and non-discriminatory business environment for Chinese firms to invest.

Opposition from German trade unions

However, a sale of Volkswagen’s plants to Chinese operators could face opposition from German trade unions, which have significant influence and may demand guarantees on jobs and factory locations.

Moreover, relations between Germany and China have become increasingly strained in recent years and, in light of the upcoming German elections, the decision-making process on Chinese investment currently appears somewhat uncertain.

However, selling factories to Chinese companies could prove to be financially beneficial for Volkswagen. According to an anonymous source, a sale could generate revenues of between €100 million and €300 million per plant.

At the same time, it also carries the risk of German car brands losing their historical edge and competitiveness in Germany, which is the largest national car market in Europe.

Editorial Staff
editorial@nordictimes.com

Facts about Volkswagen:

Volkswagen was founded in 1937 in Germany on the initiative of then Chancellor Adolf Hitler, as part of a drive for a people's car for all. After World War II, the company recovered to become a global automotive player, known for iconic models such as the Volkswagen Type 1 (the "Beetle"). Today, Volkswagen is one of the world's largest car manufacturers, owning brands such as Audi, Porsche and Skoda.

https://nordictimes.com/economy/price-explosion-in-the-baltics-after-disconnection-from-the-russian-grid/

Economy

Price explosion in the Baltics after disconnection from the Russian grid

The energy crisis in Europe

Published 14 February 2025

– By Editorial Staff

Photo: Robert So/Pexels

The Baltic countries have recently disconnected from the Russian electricity grid and joined the European system. Electricity prices in the countries are now skyrocketing.

Over the weekend, Estonia, Latvia and Lithuania disconnected from the Russian grid and connected to the grid in Finland, Sweden and Poland. Shortly afterwards, electricity prices rose sharply, Euronews reports.

Last week, the price of electricity in Estonia stood at €126 per MWh. After the switch, it has risen to €191 per MWh, the highest recorded so far in 2025.

However, the Estonian electricity and gas network operator says that the price increase is mainly due to weather conditions and the market situation.

“Less wind this week, higher electricity consumption due to colder weather and a slight increase in gas price”, it states.

Gas prices have reached record levels on the Dutch TTF market in recent years, but are expected to fall. Meanwhile, the Lithuanian-Swedish Estlink 2 submarine cable has recently been damaged by an anchor, which has negatively affected electricity prices.

Editorial Staff
editorial@nordictimes.com

https://nordictimes.com/economy/north-american-trade-war-underway-canada-and-mexico-respond-with-countermeasures/

Economy

North American trade war underway – Canada and Mexico respond with countermeasures

Donald Trump's USA

Published 2 February 2025

– By Editorial Staff

Photo: Mexico City Department of Culture/CC BY 2.0

Claudia Sheinbaum, President of Mexico.

Both Canada and Mexico have responded to Donald Trump’s recent tariffs by imposing 25% punitive tariffs on US goods themselves. The decision was taken overnight and marks the start of a trade war in the region.

Canadian Prime Minister Justin Trudeau announced at a press briefing that the Canadian countermeasures will be comprehensive and include everyday products such as beer, wine, fruit, vegetables and clothing. According to Canadian Global News, Trudeau emphasized that Canada has tried to avoid this situation, but is now forced to act.

He also urged Canadians to support domestic products and consider staying in the country for their summer vacations.

– It might mean changing your summer vacation plans to stay here in Canada and explore the many national and provincial parks, historical sites and tourist destinations our great country has to offer, he added.

Mexico has also responded with punitive tariffs, according to a post by President Claudia Sheinbaum on the X platform. However, further details on the scope and design of the Mexican tariffs have not yet been made public.

Meanwhile, China, the third country targeted by Trump, has sharply criticized the US measures. In a statement issued by the Chinese Ministry of Commerce, China said it plans to complain to the World Trade Organization (WTO) and take “corresponding countermeasures”.

China believes that Trump’s 10% tariffs are unfair and violate international trade rules.

Editorial Staff
editorial@nordictimes.com

https://nordictimes.com/economy/czech-central-bank-wants-to-build-bitcoin-reserve/

Economy

Czech central bank wants to build Bitcoin reserve

The new crypto economy

Published 1 February 2025

– By Editorial Staff

Montage. Photo: Jan Helebrant, Michael Förtsch/Unsplash/Public Domain

The Czech Republic could become the first EU and Western country to actively invest in Bitcoin.

The Czech central bank is considering including bitcoin in its reserves, according to Governor Ales Michl. It is the first Western central bank to consider buying cryptocurrency.

In an interview with the Financial Times, Michl revealed that he plans to submit a proposal to include bitcoin in the central bank’s reserves. However, he later wrote on X that the proposal requires further analysis and discussion before a decision can be made.

“No decision is imminent”, he writes. “Bitcoin has significant volatility, which makes it harder to take advantage of its current low correlation with other assets”, Michl continues.

If approved, up to 5% of the central bank’s reserves, equivalent to €140 billion, could be invested in bitcoin. This would make the Czech central bank the first Western central bank to hold cryptocurrency in its reserves.

Since Michl took over the leadership of the Czech central bank in 2022, he has focused on diversifying the bank’s reserves. This has included gradual gold purchases and an increased share of equities in the portfolio.

Bitcoin reached a new record high after Donald Trump took office. Meanwhile, financial giant BlackRock’s CEO Larry Fink predicts that the cryptocurrency could reach $700,000.

In January, Italy’s largest bank, Intesa Sanpaolo, invested over €1 million in bitcoin.

Editorial Staff
editorial@nordictimes.com

https://nordictimes.com/economy/eu-may-resume-russian-gas-imports/

Economy

EU may resume Russian gas imports

The war in Ukraine

Published 31 January 2025

– By Editorial Staff

Photo: UniqueMotionGraphics/iStock

The possibility of resuming Russian gas imports via pipelines could be part of a potential peace deal with Russia, according to the Financial Times. Proposals backed by Germany and Hungary, among others, would aim to lower energy prices in Europe while bringing Moscow to the negotiating table.

– There is pressure from some big member states on energy prices and this is one way to bring those down, of course, what is described as an anonymous EU official told the Financial Times.

The idea, meanwhile, is facing strong criticism in some quarters, including concerns in Brussels that a resumption of imports would increase Russia’s export revenues and counter previous efforts to reduce dependence on Russian energy.

From 40 to 10 percent

The EU’s direct gas imports from Russia have fallen dramatically since the start of the war in Ukraine in 2022. Before the war, Russian gas accounted for around 40% of the EU’s total gas supply, but in 2024 this share has dropped to around 10% as a result of sanctions, diversification of energy sources and the Nord Stream pipeline terror attack.

To compensate for the shortfall, the EU has increased imports of liquefied natural gas (LNG), particularly from the United States and Norway, while imports of liquefied gas also from Russia have increased through gaps still left in the sanctions.

Overall, the situation has led to a sharp increase in energy prices in Europe and has had a very negative impact on the European economy, with the EU’s largest economy Germany, for example, experiencing economic contraction for two years in a row.

– In the end, everybody wants lower energy costs, said a senior EU official, according to the Financial Times.

Growing opposition

Some EU countries, such as Slovakia and Hungary, have expressed open concern about their energy supply, arguing that the political leadership in Ukraine has jeopardized their energy security by stopping gas transfers through the country from Russia.

In Germany, the leader of the opposition party Alternative for Germany, Alice Weidel, recently pledged to restart the Nord Stream project if the party comes to power.

Editorial Staff
editorial@nordictimes.com

Polaris of Enlightenment

Polaris of Enlightenment