Chinese automaker BYD has grown by leaps and bounds over the past couple of years, coming very close to overtaking Ford in terms of global sales through 2024. BYD continues to expand to various global markets including Europe and Mexico, and as such, is also looking to expand its production footprint. In fact, BYD was looking at purchasing the Ford Saarlouis Assembly plant in Germany some time ago, though that ultimately never happened. Now, BYD is reportedly eyeing another plant in Germany as its rapid expansion continues.
According to Reuters, BYD is indeed considering Germany for the site of a potential third European plant, a move that has taken on extra importance after that region imposed tariffs on imported Chinese automobiles last year. BYD is already building production plants in Turkey and Hungary, but is now reportedly considering adding another in Europe within the next two years or so, with Germany being its top choice at the moment. However, that country’s high energy and labor costs there are apparently giving some executives pause.
In the meantime, BYD is facing some controversy in Brazil, where a former Ford plant that The Blue Oval sold to the the state of Bahia back in December 2023 was later acquired by the Chinese outfit. BYD is in the process of renovating and retooling that site, a process that’s being spearheaded by Chinese contractor Jinjiang Group, but Brazilian labor authorities are now claiming that they found 163 Chinese nationals working in “slavery-like conditions” there – allegations that Jinjiang has denied, though they’re now being investigated by Brazilian authorities.
Regardless, Ford has long viewed BYD as a major threat to its business, for a few solid reasons. For starters, that company and its Chinese counterparts are selling EVs at far lower prices than the competition, largely due to government subsidies and superior access to raw materials. Additionally, BYD’s EVs, specifically, are reportedly “several years ahead” of the competition, too.
Comment
The skunk works better get a move on before BYD builds a plant in the USA. They already build buses in California.