The electric car and the Chinese challenge, contacts with BYD

The Chinese giant BYD, which last year overtook Tesla in electric car sales, is preparing to land in Europe, where it has already launched three models. Its first European car and battery plant will be set up in Hungary and will be operational within three years, but it may not stop there because the European Commission’s investigation into Chinese electric vehicles could lead to an increase in tariffs on their imports. BYD – writes the Financial Times – rejects Brussels’ accusations that the success of its electric cars is due to the subsidies it receives from Beijing, stating that it is instead the result of the fact that it invested earlier and much more than its competitors.

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“We have some contacts with the Italian government to discuss this. It is too early to say when and if a decision on a second plant will be made,” Michael Shu, chief executive of BYD Europe, said at the Geneva Motor Show. “We have worked since the beginning of the legislature to improve the attractiveness of the country. This also applies to the automotive sector. We are the only European country that produces cars to have a single manufacturer. We have contacts with various car manufacturers” he explains Minister Adolfo Urso who for some time has not hidden the objective of bringing a second manufacturer to Italy and in recent months has had contacts with Chinese, Korean, Japanese and American companies. Byd, but also Chery, Tesla, Toyota. There is also the possibility, not excluded by CEO Carlos Tavares, that Leapmotor, Stellantis’ partner, comes to Italy to manufacture electric vehicles. One hypothesis, according to unconfirmed press reports, could be that the Mirafiori plant has low production volumes. “The government must create the conditions to encourage the development of electric and non-electric car production in Italy, it must make it convenient for any manufacturer to come to Italy, also taking into account that the European Union prohibits giving state aid to its industries” explains Gian Primo Quagliano, president of the Centro Studi Promotor. “The Chinese can import or can produce here if the conditions are created. Another manufacturer is welcome to invest in our country. They are the rules of the game. It is positive that there is more production in Italy”, underlines Quagliano. There are different opinions among the unions. “The possible arrival of a second mass producer in Italy would certainly be a good employment and industrial opportunity. However, the results in the best case scenario would be seen after years and, therefore, we need to focus on relaunching the industry already present in our country in priority way” states Gianluca Ficco, national secretary of Uilm, according to whom “it is right to act simultaneously on the existing and open up new perspectives”, Samuele Lodi, national secretary of Fiom-Cgil and head of the mobility sector, recalls that “for years the Fiom -Cgil highlights the all-Italian criticality of having only one manufacturer. This has led to a progressive impoverishment of the automotive sector over the years due to the progressive disinvestment of first FCA and then Stellantis. Car production in Italy must aim for one million in terms of volumes, in addition to the 300 thousand light commercial vehicles”. Roberto Di Maulo, general secretary of Fismic Confsal, has a different opinion: “I’m happy that BYD has contacts with the Italian government, but the country needs industrial policies, not to let the Chinese in. Trojan horses are fine in the books of history, Europe must be safeguarded from the entry of the Chinese. This also applies to the Chinese partners of Stellantis.”

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