Key Takeaways
- Production reversal: Volkswagen is considering building the ID. Unyx range, originally developed for the Chinese market, in Germany.
- CEA platform: Three models are involved—Unyx 07, 08, and 09—born from the collaboration with Xpeng on the China Electrical Architecture platform.
- Plants at risk: The move would affect the Hanover, Emden, Zwickau, and Neckarsulm facilities, which face closure threats between 2031 and 2034.
The Project Under Review
Volkswagen is examining the possibility of producing the ID. Unyx range, a family of electric vehicles designed for the Chinese market, in Germany. The proposal is backed by the state of Lower Saxony, the group's second-largest shareholder, and will be discussed by the supervisory board in the coming weeks.
For decades, the automaker developed models in Germany before exporting them and, in some cases, producing them locally in China. The current plan reverses that pattern: technology and design born in China would be transferred to German factories.
The Three Candidate Models
At the center of the review are three vehicles built on the CEA platform, the result of the partnership with Xpeng. The ID. Unyx 07, a rear-wheel-drive sedan measuring 4,881 mm, was the first production model to use this architecture. The ID. Unyx 08, an SUV measuring 4,887 mm with 800-volt technology, could—according to one executive—take over the segment once occupied by the Touareg. The ID. Unyx 09, a luxury sedan measuring 5,081 mm, is expected to hit the Chinese market in October.
Underused Plants and Restructuring
The review is part of a restructuring plan that calls for cutting up to 100,000 jobs and reducing the model lineup by 50% by 2028. German plants are operating below their production capacity, while demand for electric vehicles in Europe remains weaker than initially forecast.
Four plants are directly involved in the plan: Hanover, Emden, Zwickau, and the Audi facility in Neckarsulm, all of which face possible closure between 2031 and 2034. Using these lines to build the Unyx range would be one of the options under consideration to keep them running.
Xpeng's Role
Shifting production to Germany would deepen the partnership with Xpeng, whose vehicles for the European market are currently assembled by Magna Steyr in Austria. No decision has been finalized yet: the project remains under internal review, pending a ruling from the supervisory board.
