Traditional internal combustion engine automakers, responding to shifting market demands, cost pressures, and technological evolution, are systematically downsizing inefficient production capacity and divesting non-core manufacturing assets. This strategic reallocation of resources concentrates investment on electrification research and core production capabilities. Concurrently, Chinese automakers, leveraging mature new energy vehicle technologies and supply chain advantages, are actively acquiring globally idle, high-quality production capacity to accelerate their overseas expansion.

Asset Divestiture by ICE Automakers

European, Japanese, and American legacy automakers are undergoing arduous structural adjustments. On December 16, 2025, Volkswagen closed its "Transparent Factory" in Dresden, Germany—marking the company's first closure of a domestic vehicle assembly plant in its 88-year history. The facility, which previously manufactured the Phaeton and ID.3 models, will transition into an artificial intelligence, robotics, and semiconductor research and development hub. Volkswagen Group plans to eliminate approximately 50,000 positions in Germany by 2030.

Ford Motor Company is similarly advancing its European business restructuring. The company intends to reduce its European workforce by roughly 4,000 employees by the end of 2027, including approximately 1,000 voluntary departures initiated in 2025 at its Cologne electric vehicle manufacturing facility. Nissan Motor Corporation, confronting deteriorating financial performance, announced in November 2024 a global workforce reduction of 9,000 employees alongside a 20% production cut. Subsequent reports indicate the downsizing may expand to 20,000 positions, with the company having already sold its global headquarters building in Yokohama. Mercedes-Benz, in February 2025, divested its Virrey del Pino plant in Argentina—a facility with nearly 70 years of operational history—given that the plant possessed only diesel engine production capability and would require billions of euros in investment for electrification retrofitting.

Reverse Acquisitions by Chinese Automakers

Chinese automakers are leveraging new energy technology and cost advantages to conduct reverse acquisitions of global idle production capacity. In May 2026, Geely Auto reached an agreement with Ford Motor Company to acquire the "Body 3" body and final assembly production line at Ford's Valencia plant in Spain. Geely intends to utilize this facility for manufacturing new energy vehicle models based on its GEA architecture.

This transaction represents no isolated case. Overseas mergers, acquisitions, and production capacity deployment have become integral components of Chinese automakers' globalization strategies. By acquiring mature production lines, Chinese manufacturers can rapidly obtain localized manufacturing capabilities, compress product launch timelines, and effectively navigate trade barriers.

Upstream Supply Chain Resonance

The wave of asset divestiture has extended from vehicle manufacturers to upstream supply chain enterprises. Following its acquisition of Vitesco Technologies, German automotive components giant Schaeffler Group promptly sold Vitesco's turbocharger business operations in China to Chengdu Xiling Power. Domestically, Dongfeng Motor Group, seeking to optimize its ICE asset structure and accelerate new energy transition, listed its 50% equity stake in Dongfeng Honda Engine Company for sale in 2025. JAC Motors and other enterprises are similarly transferring non-core components businesses to free up resources for new energy strategies.

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