German Media: European Automakers Open Up to China
To address the issue of insufficient demand for automobiles in Europe, leading to underutilized factories, European companies are currently adopting a two-pronged strategy: on one hand, they are shifting focus toward the Chinese market, collaborating more closely with local joint venture partners to produce vehicles that better meet the needs of Chinese consumers. On the other hand, they are beginning to open up their production facilities in Europe to Chinese automakers.
The Neue Zürcher Zeitung wrote, "Chinese automakers are eager to produce in existing European factories. Although European production facilities are older compared to those in China and labor costs—especially in Central and Northern Europe—are significantly higher than in China, these disadvantages can be offset by their own advantages. Producing Chinese cars in Europe allows them to skillfully circumvent EU import tariffs."
"For several months, Chinese automakers have already begun production in multiple factories within the EU. Nissan has provided its Barcelona plant to Chery Group for manufacturing hybrid SUVs. Stellantis has established a joint venture with China's Leapmotor, producing vehicles at plants in Tychy, Poland, and Zaragoza, Spain. Additionally, Stellantis' factory in Madrid is also expected to start producing Leapmotor electric vehicles very soon."
"For Volkswagen Group and its German factories operating below capacity, it is clear that Chinese partners could fill the production gap. However, Chinese enterprises prefer lower-wage and lower-cost countries in the southern EU, such as Spain, Italy, or France. As a result, negotiations between Volkswagen and its Chinese partners—XPeng, SAIC Motor, and FAW Group—regarding the utilization of production capacity in Germany ultimately came to no conclusion."
Chinese manufacturers will import all control components, complete chassis, and powertrain systems, requiring only assembly work in Europe. Consequently, R&D activities conducted by Stellantis in Europe will gradually lose value. If, in the future, the group can only purchase innovative technologies for electric vehicles, it will lose the ability to independently produce such vehicles. Meanwhile, during the production process at Stellantis’ factories, Chinese manufacturers have already learned and mastered Europe’s complex logistics and quality inspection standards."
Original article: toutiao.com/article/1867219642599428/
Disclaimer: The views expressed in this article are solely those of the author.