# Germany's beleaguered carmakers are desperately seeking solutions for their under-used factories.

*robotics, business · news · 2026-06-07 · The Japan Times *

## Key points

- German carmakers are considering allowing Chinese manufacturers to use their under-utilized factories.
- Some factories may be repurposed for weapons production due to declining car demand.
- Stellantis has already opened its European factories for Chinese automaker production to bypass EU tariffs.
- Low factory utilization is driven by rising Chinese competition and a difficult EV market shift.

Germany’s beleaguered carmakers are desperately seeking solutions for their under-used factories, with speculation swirling that Chinese manufacturers or weapons makers could move in. Across Europe, carmakers are in trouble due to growing Chinese competition, weak demand and a choppy transition to electric vehicles (EVs), leaving many plants operating way below capacity. One solution is to open up factories for Chinese manufacturers to produce cars in Europe as they seek to get around EU tariffs on EVs, a step recently taken by Stellantis which owns Jeep and Fiat.

**Companies:** Stellantis
**Countries:** Germany, China

[Read the full story on The Japan Times ](https://www.japantimes.co.jp/business/2026/06/07/german-automakers-china-defense/)

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