BERLIN, Jan 28 (Reuters) - Volkswagen and its Chinese

partners have discussed the possibility of them investing in

plants in Germany, VW Chief Executive Oliver Blume told Reuters

on Tuesday.

Last week, Reuters reported that Chinese investors were

shopping for German factories.

"We have close partnerships in China and of course, there

have been conversations, but no concrete decisions," Blume told

Reuters when asked whether he would consider selling a German

factory to a Chinese investor.

Blume was speaking on the sidelines of a conference in

Berlin organised by German publication Die Welt.

Volkswagen has three joint venture partners in

China - SAIC, FAW and JAC - and owns a stake in

Chinese EV startup Xpeng ( XPEV ), none of whom currently have

production facilities in Europe.

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 suffered a fall in sales

exacerbated by rising competition from Chinese automakers.

Its top executives wanted to close several plants but faced

resistance from unions.

In a deal struck before Christmas they agreed to end

production in Dresden, a 340-worker plant making the electric

ID.3, from 2025, and Osnabrueck, where 2,300 employees produce

the T-Roc Cabrio, from 2027.

So far, Chinese automakers have shown little public interest

in building or buying plants in Germany, known for its high

energy and labour costs.

China's largest automaker BYD is building a

plant in Hungary, while Chery will start production in Spain

later this year via a joint venture with Spanish partner Ebro.