BERLIN, May 12 (Xinhua) -- A senior German state official has called for a more pragmatic approach in cooperation with Chinese automakers, suggesting joint ventures and other forms of partnership to help safeguard industrial capacity and jobs in Germany's struggling auto sector.

People visit the booths of Mercedes-Benz and Beijing Automotive Group Co., Ltd. during the 2026 Beijing International Automotive Exhibition in Beijing, capital of China, April 26, 2026. (Photo: Xinhua)

Dirk Panter, economy minister of the German state of Saxony, said Chinese manufacturers can help utilize underused production lines at car plants in the state, at a time when Germany's automotive industry faces mounting pressure from a slowing electric vehicle (EV) transition.

"China is an opportunity," Panter said in a statement published by Saxony's economy ministry on Monday.

Panter said a joint venture between Volkswagen and Chinese automakers is one possible model, under which Chinese partners can produce vehicles using currently underutilized facilities in Saxony. He stressed he is not proposing a sale of any plant, but cooperation within existing or new joint ventures in which Volkswagen already holds a stake.

Located in eastern Germany, Saxony has been one of the country's key automotive manufacturing hubs, hosting production sites for auto giants such as Volkswagen, BMW and Porsche.

Volkswagen's plant in Zwickau, the group's first factory fully converted to EV production, has faced capacity pressures amid weaker-than-expected EV demand in Europe. Under current plans, output on one production line is set to halt entirely from 2027.

Rather than allowing Germany's auto industry to lose industrial capabilities during the current transition, Panter said policymakers should adapt to changing market realities and preserve existing manufacturing capacity and production systems.

He noted that such cooperation with Chinese partners is not a novel concept, pointing out that German automakers including Volkswagen have long operated through joint ventures in China.

Panter also said the global automotive landscape is undergoing profound change and that China has emerged as an innovation driver and industry leader in EVs and battery technologies, with Chinese automakers and their joint venture partners already producing vehicles in some European countries.

"Anyone who wants to secure the future of the automotive industry in Saxony and Germany cannot ignore this reality," he said.