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Volkswagen’s plans to drastically ramp up cost cuts are a “wake-up call” for the European automotive industry as Chinese carmakers target a higher market share, BYD’s special adviser for the region said on Wednesday.
Hit by tariffs, rising costs and intensifying competition from China, Volkswagen is weighing its largest-ever restructuring with 100,000 job cuts and four German factory closures, sources said last week.
“It’s the first real wake-up call for the European industry,” BYD’s Alfredo Altavilla told the Reuters Automotive Europe conference in Frankfurt.
He expressed doubt about the competitiveness of German manufacturing sites as BYD, the world’s largest manufacturer of electric vehicles, looks for a second site in Europe, following Hungary.
Altavilla said Spain and France are candidates for a brownfield investment — which refers to an existing factory by a legacy carmaker — with a final decision “close”.
He criticised expectations that Chinese entrants to Europe would take minority stakes in joint ventures with locals while bringing the latest technology.
“This is not coexistence. This is brutal violence,” Altavilla said.
His comments come as legacy carmakers look for ways to address excess production capacity while catching up on product development and technology such as batteries and software.
Stellantis has majority stakes in its joint ventures with China’s Dongfeng and Leapmotor intended to boost production at sites in Spain and France.
Reuters
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