A new report claims Chinese carmakers are interested in buying Volkswagen's factories in Germany, but this could be only a pipe dream of a company in distress

Chinese officials and automakers are eyeing German factories slated for closure and are particularly interested in Volkswagen's sites , a person with knowledge of Chinese government thinking told Reuters.

Chinese officials are eyeing Germany's automotive sector, seeking to acquire factories like Volkswagen's to avoid EU tariffs on electric vehicles.

According to anonymous sources cited by "Reuters," Chinese manufacturers are seriously considering acquiring German Volkswagen factories slated for closure. If such a sale occurs, it would be an unprecedented development.

Volkswagen is exploring alternative uses for its Dresden and Osnabrueck factories under a cost-cutting drive to pare back its German operations. Europe's biggest automaker, which owns brands including Porsche, Audi and Skoda, has seen sales fall amid rising competition from Chinese companies.