Chinese carmaker Xpeng is on the hunt for a factory in Europe . Volkswagen is aiming to reduce the number of its factories. It seems like it should have been the perfect set-up for a deal. Yet there was one problem with the plant on offer, according to Elvis Cheng, Xpeng’s managing director of north-eastern Europe: “It’s a little bit, I would say, old.” The withering verdict on the facilities of Germany’s carmaking champion, delivered this week at a Financial Times conference, may cause some awkwardness between Xpeng and Volkswagen, which also happens to be a shareholder and technology customer. However, it neatly encapsulates the shifting balance of power in the global car industry. Many of Europe’s carmakers are on the retreat, while China’s industry is on the march . Chinese car sales have soared across Europe thanks to a wave of imports.…