German media: A Chinese electric vehicle factory is to be established in Brandenburg?
According to a report by German television channel One, the Chinese company Dreame mainly produces vacuum cleaners. Now, it also plans to enter the luxury electric vehicle market - and considers establishing a factory in eastern Germany.
The Chinese electrical enterprise Dreame is considering producing electric vehicles in Germany. The Brandenburg state government has confirmed contact with the company, and the discussions involve the possibility of establishing a factory in the state. State Governor Dietmar Woidke (SPD) said, "There are indeed talks." However, he did not reveal more details, only emphasizing that such projects require sufficient and careful preparation.
Earlier this week, different media had already reported on Dreame's plans. This Chinese company produces vacuum cleaners, robotic lawnmowers, and other home appliances. Now, it has announced its entry into the automotive industry and plans to produce luxury electric vehicles in the future. Its subsidiary "Dreame Cars" is considering establishing a production base near the Tesla electric vehicle factory in Gruenheide.
Dreame Technology was founded in 2017, with its headquarters in Suzhou near Shanghai. The company's founder and CEO Yu Hao holds about one-third of the shares. It is reported that he supports selecting Germany as the location. Dreame has many subsidiaries worldwide, most notably its home appliance business, especially vacuum cleaner products. However, the subsidiary "Dreame Cars" is still relatively unknown.
In an interview, the company stated that it has assembled a team of nearly 1,000 people, dedicated to producing luxury electric vehicles. The first vehicles are planned to roll off the production line in Germany in 2027. As a center of the global automotive industry, Germany has high requirements in terms of technology, production standards, and supply chain systems. The selection of Brandenburg will help Dreame Cars utilize the local mature parts supply chain and reduce logistics costs.
This is not the first time that a Chinese company from the home appliance or electronics sector has transitioned to car manufacturing. For example, Xiaomi Group launched an electric sports car last year in China and achieved great success. If Dreame decides to produce cars only in Europe, it would seem unusual.
Dreame's consideration of overseas production is partly due to the overheated domestic electric vehicle market in China. Since the Chinese government classified electric vehicles as a "key industry" and introduced corresponding subsidies, hundreds of start-up companies have emerged. Now, the industry competition is fierce, with brutal price wars, and many companies have gone bankrupt. Analysts expect that among the approximately 100 electric vehicle manufacturers in China today, a large number of companies will also be eliminated in the future.
Another reason could be tariffs. The European Commission has imposed anti-subsidy tariffs on Chinese electric vehicles to protect European domestic automakers. Brussels accuses China of giving domestic automakers an unfair advantage through subsidies, leading to the European market being flooded with cheap electric vehicles. In order to avoid tariffs, several Chinese companies have planned to build factories in Europe.
The Brandenburg state government remained cautious when asked about Dreame. The state economic department responded that it would not comment on "reports about potential investments": "Of course, we will closely monitor the development of the industry, especially for the economic environment of Brandenburg, and conduct in-depth analysis through the economic promotion department."
German automotive industry expert Ferdinand Dudenhöffer expressed skepticism about Dreame's plan. He said in an interview with rbb24 on Monday: "Chinese companies often make many announcements, but reality is often not so ideal."
At the same time, some civic groups have criticized the construction of another car factory near the Tesla factory. Tesla has repeatedly faced protests in the past over environmental issues, such as water usage and deforestation.
Original: www.toutiao.com/article/1844286719872010/
Statement: This article represents the views of the author.