Wednesday, 22 May 2024
WorldDoes Italy want to 'steal' BYD plant from Mexico? Wants to...

Does Italy want to ‘steal’ BYD plant from Mexico? Wants to be ‘home’ of the Chinese manufacturer

Find your own investments, Italians… Giorgia Meloni’s government has contacted BYD, a Chinese electric car company, as part of the country’s efforts to attract a second car manufacturer in addition to the maker of Fiat.

“We have some contacts to discuss this,” he revealed. Michael Shu, CEO of BYD Europe, in an interview at the Geneva International Motor Show. The need for a second European plant “depends on our sales; “We are making very good progress now.”

Prime Minister Meloni’s administration plans to attract a new major automaker to Italy after Stellantis warned it could move some of its production to lower cost countries.

Manufacturers are under pressure to be more efficient in the transition to electric vehicles, as prices for battery vehicles remain much higher than those for equivalent combustion engine vehicles.

BYD, the company that ‘dethroned’ Tesla, wants to expand in Europe

China’s BYD overtook Tesla as the world’s largest electric vehicle maker last year. The company confirmed in December that it will build a factory in Hungary to help boost sales in the region. The manufacturer is focusing on Hungary and it is too early to say when and whether a decision will be made in a second placeShu said.

When asked about BYD, Italian Industry Minister Adolfo Urso said on February 27 at an event in the southern city of Taranto that he hopes Italy will be like other European nations with various car manufacturers producing in its territory to “strengthen” the country’s automotive supply chain.

Urso said in early February that Italy “supported the arrival” of a second automotive producercalling it “a project we have been working on for months with significant conversations with foreign partners.”

The project has raised the prospect of yet another competitor for Europe’s domestic car manufacturers, particularly for Volkswagen, Stellantis and Renaultwhich serve the competitive mass market segment.

BYD’s investment in Hungary comes a few months after the European Union announced an investigation into state subsidies to Chinese electric vehicle makers and could help the company to avoid additional import duties. The manufacturer has been cooperating in the investigation, Shu noted.

“We have solid products and technology and flexibility in supply chain management,” he said. “Based on the facts, I don’t think the company’s success in Europe comes from subsidies.”

What do we know about the possible BYD plant in Mexico?

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In statements to the Japanese newspaper Nikkei, Ray Zou, president of BYD Mexico, stressed that our country “It is a key market with vast potential” which could be key in the Chinese manufacturer’s expansion plans.

“The company is negotiating with officials of national and local governments the location and other conditions of the plant,” reported Nikkei in the middle of this month.

According to the newspaper, the potential locations of the BYD plant in Mexico are:

Stella Li, executive vice president of BYD and president of BYD Americas, told The financial that the Chinese manufacturer planned to bring up to seven of its models to Mexico and sell 30 thousand units during 2024.

“Mexico needs BYD to help reduce CO2 emissions“We need to act through technology,” he said.

With information from Fernando Navarrete

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