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Europe Car Industry May Grow as China Costs Rise, VW’s Jahn Says

Car industry companies are returning some production back to Europe from China as its cost advantage weakens, providing an opportunity for central European nations to attract investments, a Volkswagen AG executive said.

While several years ago expectations were for a “massive transfer” of automobile operations to Asia to save on labor expenditures, “we are seeing a rather opposite process at present,” Martin Jahn, managing director of Volkswagen Group Fleet International, said in an e-mailed response to Bloomberg News questions.