Germany: BYD is Considering Acquiring European Enterprises, Targeting Southern Europe
A special advisor to BYD in Europe revealed that the company is about to decide whether to acquire an existing automotive factory in Europe to establish a second assembly base. Spain and France in Southern Europe are under consideration.
Reuters cited a senior BYD advisor on Wednesday, July 1, stating that the company is nearing a decision on whether to acquire an existing European auto plant to accelerate its expansion in the region.
"A decision will be made soon," said Alfredo Altavilla, BYD’s Special Advisor for Europe, during the European automotive industry conference held in Frankfurt. He mentioned the proposed EU rules related to "Made in Europe," which aim to promote domestic manufacturing.
Altavilla stated that Spain and France are candidate locations for "brownfield investment," with a decision expected imminently.
Brownfield Investment refers to a type of investment where companies acquire or lease existing industrial, commercial facilities, or idle land, then renovate, clean up pollution, or redevelop them for operations—contrasting sharply with "greenfield investment," which involves building from scratch.
Altavilla’s remarks come as traditional European automakers seek to address overcapacity while making massive investments in product development, batteries, software, and other technologies.
Last year, BYD's sales in Europe surged by 270%, reaching nearly 188,000 units; this year, through the first five months, sales have more than doubled, exceeding 100,000 units—encompassing both pure electric vehicles and hybrid-engine cars.
Acquiring an existing factory would give BYD a second European assembly base following its plant in Hungary (expected to start production in the fourth quarter), demonstrating how Chinese automakers are accelerating their entry into the European market.
"Trying to resist this 'invasion' is futile," said Altavilla. He added that Volkswagen’s plan to intensify cost-cutting measures represents the "first real wake-up call" for the European automotive industry.
Due to tariffs, rising costs, and increasingly fierce competition from Chinese rivals, Volkswagen is considering its largest-ever restructuring, including cutting 100,000 jobs and closing four German factories.
There is now a perception that Chinese manufacturers entering the European market might be willing to hold only minority stakes in joint ventures while offering their latest technologies. Altavilla stated this view does not reflect reality.
Source: DW
Original article: toutiao.com/article/1869595874093059/
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