Manufacture their electric cars in Europe so that they can sell them without tariffs. That was the promise of the European Union to Chinese manufacturers. The objective was to consolidate the electric car industry for Europe in Europe, closing the door to proposals from China at a much more attractive price.
And the result is not what was expected.
Manufacture in Europe. In October 2024, the European Union confirmed the tariffs to all the companies that bring their electric cars from China. Including European ones. With this measure that applies individually to each company (ensuring that not all have received the same benefits from the Chinese State) it was intended to attract factories to Europe.
Why does an electric car have less autonomy than advertised?
The strategy has gone well. First, because the Chinese State ordered to stop all investments in Europe that were in the negotiation phase, initially turning off the tap. Secondly, because it is not clear that the installed factories are giving great results in terms of employment.
From China for Chinese. “There are currently manufacturers in Europe that assemble Chinese cars with Chinese components and Chinese personnel: this happens in Spain and Hungary. This is not right.” The words are from Stéphane Séjourné Vice President of Prosperity and Industrial Strategy of the European Commission, in an interview for the Italian newspaper La Stampa.
In it he pointed out Spain and Hungary as the two hot spots. In this second country, BYD is building its first plant in Europe to produce electric cars. In Spain we have the Chery plant in Barcelona and, under construction, the CATL battery plant in Aragon.
In all previous cases, criticism has multiplied because they are not impacting the area as expected.
The Hungarian case. Séjourné refers to the plant that BYD has planned in Hungary. There, the Chinese company is building a factory that should produce 150,000 cars a year (with potential for 300,000 units) and employ 10,000 workers. However, the European Union is studying if the Chinese giant is receiving covert subsidies to carry it out, paralyzing its construction.
In the early phases of the project, BYD has employed about 1,000 workers Chinese which has raised the suspicions of the European Commission as to whether there is really an intention to produce wealth on European soil. some of them They staged protests last summer by claiming that they had been fired just six months after joining despite receiving promises of large salaries upon arrival in Europe.
BYD is at the center of controversy because the European Commission suspects that in the future Chinese workers may be the majority at the plant, since they would aspire to lower salaries. The company, yes, He already promised that he would employ local workers to advance vehicle production. The question is whether this first hiring of Chinese personnel responds to the start-up of the factory or the advancement of a way of acting that extends over time.
The Spanish case. In Spain, two factories have concentrated China’s interest. The first to arrive was the one from Chery to Barcelona. There, the Chinese company has found that it already had the necessary machinery to remove cars from it since it responds to the occupation of the old Nissan plant. However, the plans are not meeting the expected deadlines.
Chery is assembling kits of cars in Barcelona. That is, the car arrives in large pieces to Spain and is finished being assembled here, so the local impact is reduced. In this case we are not talking about employment but we are talking about the fact that the network of suppliers generated is minimal. The European Commission did not like this and, in fact, the electric Omoda 5 has been delayed in Barcelona because the regulators threaten to impose tariffs on them when they understand that the added value is zero.
The other point of friction is that of CATL in Aragón. The Chinese battery producer announced an agreement with Stellantis to produce there the components that the automotive giant will use in its small cars. For now, we know that 2,000 Chinese employees will arrive and, again, the shadow of what impact the new factory will have on the local labor market is looming. According to T&Eit is not guaranteed that the CATL plant will guarantee long-term knowledge transfer.
More pressures. In addition to the statements by European regulators, other voices have also raised their voices. France is one of the countries that is most under pressure to create a new category of cars to make electric vehicles cheaper. Their proposal is that they meet certain size requirements… but also that production be entirely European.
These days, Josep María Recasens, president of Renault Spain, returned to the charge ensuring that “we cannot allow China to come to Europe to make four plates with wheels without added value.” In his statements he asked that Europe force Chinese companies to associate with European ones so that there is a transfer of knowledge as China itself demanded from Europe when its manufacturers began to produce on Asian soil.
Photo | Official Lula on Wikimedia and BYD
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