Tesla has decided to extend its tentacles in Europe. The American firm already has a production plant in Germany but is looking for another location and, although they have not made it public, BYD and Ford are negotiating the sale of Saarlouis. Chinese electric car brands want to dominate Europe, proof of this is SAIC which is looking for a place to manufacture the MG4 Electric in a big way.
A few years ago, European car brands looked for production sites in other countries outside the Old Continent to lower labor costs, although it is something that was not very noticeable in the price of new cars sold in Europe. In reality, nothing was noticed, only that what the brands did was diversify production sites to increase sales and reduce delivery times.
Now, with electric cars, the tortilla has been turned around. Manufacturing in the Far East is cheaper and there is a difference of a few thousand euros between a European model equivalent to an Asian one. Today, the situation is becoming so tense, asking Asian manufacturers for tariffs and taxes, that if the European Union does not act, it will cause terribly great damage to the brands of the Old Continent. The situation is complicated, because relations with the Asian giant are also tense, so that the eastern brands, aware of the possible big problem they are facing, have pulled an ace out of their sleeve that nobody thought.
SAIC wants to manufacture Morris Garage electrics in Europe
Settle in Europe. Tesla already has a factory in Germany and is looking for a site for another in Europe. BYD too, and is very interested in the Ford plant in Saarlouis. The one with the blue oval is eager to sell and the other party to buy, and although they have not made it public, they are in talks to reach a good port. The latest to join this initiative has been SAIC, the owner of the Morris Garage brand which, with its MG4, has conquered the European public.
SAIC transports the units of its electric models by ship to the Belgian port of Zeebrugge or the Dutch port of Rotterdam, manufacturing in Europe will avoid the dreaded export taxes, and put Europeans even more against the ropes, with significantly greater competitiveness, especially if they are able to keep production costs low and the significant price difference.
BYD also struggles to produce in the Old Continent
The Asian manufacturer, which maintains alliances with Volkswagen or General Motors in China, sold more than 115,000 units in Europe during the first half of last year, 70 percent of them from MG and a few from Maxus. As of today, SAIC is clear that it is going to settle in Europe, the sooner the better. Even a spokesman for the firm, whose identity is not known, has indicated that "we are still discussing which brand is the one that will take advantage of this new European factory." A way to divert attention, but given the commercial results of the MG4, it is not necessary to think much about who will benefit, in view of the great competition with the BYD Dolphin and the Volkswagen ID.3.
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