EU carmakers pave way for Chinese rivals as balance in market shifts

"Chinese car sales have soared across Europe thanks to a wave of imports. They accounted for 8.6% of the western European market in the first three months of the year, nearly double the same period a year before, according to Matthias Schmidt, a Berlin-based automotive analyst. Many of the Chinese companies including BYD, Changan, Chery, Dongfeng and Geely are now aiming to produce vehicles in Europe."

"Xpeng is on the hunt for a factory in Europe. Volkswagen is aiming to reduce the number of its factories. It seems like it should have been the perfect set-up for a deal. Yet there was one problem with the plant on offer, according to Elvis Cheng, Xpeng's managing director of north-eastern Europe: It's a little bit, I would say, old."

"Some are considering building their own factories, but Europe's struggling carmakers have also spotted an opportunity to off-load their underused plants, even if it helps the companies eating up their market share. Rather than worrying about letting the fox into the henhouse, they are holding open the door. Volkswagen's factory in Zwickau, eastern Germany."

"Nissan is in talks with Chery to give over part of its sole European factory in Sunderland, northern England, after previously selling Chery another plant, in Barcelona. Ford has reportedly agreed to sell part of its plant in Valencia, Spain, to Geely. Stellantis, the own"

Xpeng is searching for a factory in Europe, but a potential Volkswagen plant is described as old. Volkswagen wants to reduce the number of its factories, creating opportunities for Chinese manufacturers and for European companies to off-load underused capacity. Chinese car sales have risen sharply across Europe, reaching 8.6% of the western European market in the first three months of the year, nearly double the prior year period. Multiple Chinese firms, including BYD, Changan, Chery, Dongfeng, and Geely, are considering producing vehicles in Europe, either by building new plants or by acquiring existing ones. European automakers are also pursuing deals involving their facilities, including Nissan’s talks with Chery and Ford’s reported agreement with Geely, while Stellantis is also involved.

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