Ex Mercedes Benz factory in Russia to produce high end Chinese cars

Well, this is the best opportunity for Chinese high-end auto brands to occupy the world. On March 21, Russian media reported that the former Mercedes-Benz factory in Moscow is about to resume work and will produce high-end cars of Chinese brands. The plant in Moscow was was sold to the holding company of the Avtodom Group following Mercedes-Benz's decision to withdraw from the Russian market at the end of October 2022. The general manager of Avtodom Subscription said that they will find a mature replacement for Mercedes-Benz. At present, traditional fuel vehicles in China are engaged in a fierce price war.

At this time, it is undoubtedly a good choice for China’s auto companies to go to overseas markets, and it is also the current hope of all Chinese car companies. In fact, apart from Mercedes' tragic fate in Russia, the UK had a similar fate last year. At the beginning of November, 2022, on the plane of German Chancellor Scholz's visit to China, there were two figures at the helm of car companies that attracted the attention. One is the new head of Volkswagen, Oliver Blume, and the other is Oliver Zipse, Chairman of the BMW Group, who is concerned about transformation.

They have different corporate missions, but they all choose the Chinese market to find a way in the EV era. Herbert Diess, the former CEO of Volkswagen, once said: "Germany has seriously underestimated China's contribution to Germany's prosperity. If there is no business relationship with China, German inflation will further intensify." Ola Kallenius, the CEO of Daimler, also recently stated that the German economy without China is an "illusion".

Yes, one of the main reasons why German companies have increased their investment in China is that the energy crisis has led to severe stagflation within Europe and high manufacturing costs. They have to look for places where they can transfer manufacturing capital, and China is undoubtedly the best investment destination. In fact, rather than transferring investments, they are "fleeing" to China. So, can choosing China really save the future of German car companies? Why is China the most suitable for the transformation of German car companies? OK, that and more is exactly what we are going to talk about.