EXCLUSIVE: BYD in talks to take over part of Volkswagen's Dresden plant
BYD is in advanced talks to take over half of Volkswagen's Dresden plant, enabling local EV assembly to avoid 10% EU import duties and 17% anti-subsidy tariffs. This wou…
BYD is in advanced talks with Volkswagen to acquire part of its Dresden plant for electric vehicle (EV) production, a strategic move that could bypass a 10% import duty and 17% EU tariff on Chinese-made vehicles. This would enable BYD to offer more competitive prices to German consumers.
In March, BYD sold 3,438 vehicles in Germany, representing a staggering 327% increase year-over-year.
Under the potential deal, BYD would invest directly in the facility, occupying half the space for manufacturing. The other half would be repurposed as an innovation hub, partnering with the state of Saxony and TU Dresden.
Germany opposed the EU's additional tariffs on Chinese EVs. Volkswagen CEO Oliver Blume praised the idea of sharing idle capacity with Chinese rivals as a "clever solution" in comments made on April 30.