Chancellor Friedrich Merz signalled Wednesday he was not opposed to Chinese carmakers taking over struggling German auto plants but cautioned it could not be a long-term solution for the industry's problems.

Volkswagen boss Blume – who also told staff that four plants might need to close – said in April that he was open to Volkswagen’s Chinese partners using its plants.

Stellantis said in May it had formed a joint venture with China’s Dongfeng to share manufacturing, sales and engineering operations on the continent.