“BYD Making Bold Move to Establish Manufacturing Presence in Europe with Own Plant”
Just weeks after reports that Ford was considering selling its German manufacturing facility to BYD, the Chinese automaker seems more interested in setting up its own EV plant in Europe, according to a company executive. Here’s the latest.
BYD Auto is the automotive subsidiary of BYD Company, which designs and manufactures passenger cars, buses and trucks in China, in addition to rechargeable batteries and energy storage solutions that we are increasingly deploying in the United States.
In the summer of 2022, BYD announced plans to start selling its electric vehicles outside of China by entering the Japanese market. Ten days later, the company promised EV deliveries in Germany and Sweden before the end of 2022.
BYD EVs will also be available in the countries mentioned above, in addition to Norway, Denmark, the Netherlands, France and Belgium. To support its growing overseas sales presence, BYD announced its intentions for at least one, if not two, manufacturing facilities in Europe.
These new facilities will also soon support electric vehicles heading to the UK as BYD has announced sales in a wider territory. In late January, we reported that Ford was looking to sell its existing manufacturing facility in Saarlouis, Germany, and was in talks with BYD as a potential buyer looking for bricks and mortar in Europe.
However, according to recent comments from an executive at BYD, talks with Ford appear to have fizzled out, leaving the Chinese automaker to consider building its own factory(s) in Europe.
Tang EV by BYD – A model soon to be sold (and possibly manufactured) in Europe / Photo credit: BYD Auto
BYD says Ford is planting out, but no target country in Europe yet
In a recent interview, BYD executive vice president Stella Li said the automaker would look into building its own EV factory in Europe rather than acquiring Ford’s plant.
We do not focus on the facilities of specific companies. We are conducting feasibility studies to see our plans for the future. For example, if we’re building our facility in this region, what’s the best solution out there?
The best solution seems unclear at the moment, as the company says it “does not have any target countries to build plants yet”. However, it seems clear that Ford’s plant is off the table and BYD will be looking for land elsewhere in Europe.
Ford should be fine though. According to the original report of Wall Street JournalThe American car manufacturer recruited 15 potential applicants for the German plant. BYD, on the other hand, is already building a new facility in Thailand to support consumers in Australia, Japan and Singapore.
The expected facilities in Europe should also help to shorten supply chains and support upcoming distribution and dealer networks and service centers. We’ve seen Chinese EV automaker XPeng Motors implement a similar entry strategy in Europe, ensuring it has the brand recognition and physical footprint to support dealer and after-sales needs before officially starting sales.
It is still unclear whether BYD plans to enter the US market after Europe, Ford’s home. BYD’s potential competitors in Europe are scrambling to cut costs and move production to North America so their electric vehicles will once again be eligible for federal tax credits under the revised terms of the Inflation Reduction Act — a lawmaker that Li says “the US is not helps to be competitive in the EV race or to help US consumers enjoy the best and most innovative technology.”
Instead, BYD leadership believes that China and Europe will lead the world in EV adoption. Time will tell when BYD opens its order books in Europe, but it will certainly take some overseas manufacturing to support this company, whether it’s a Ford plant or its own.
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Source: electrek.co
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