Recently, the Chinese giant BYD announced its plans to strengthen its presence in the European market. Among them is the construction of a completely new factory in the city of Szeged, located in the south of Hungary.
After a period of intense deliberation, BYD has decided to open its first European factory in Szeged, moving other potential locations to Germany, Spain and France. Preference was given to the Hungarian city due to its proximity to the borders with Romania and Serbia “Ideal geographical position for supply to the European market”.
BYD unceremoniously sacked France
The logic of such a choice is reinforced by the fact that BYD already has a plant in Hungary dedicated to the production of buses. However, this decision may seem rather paradoxical, given BYD’s past in France, where the company previously operated a factory near Beauvais between 2017 and 2021.
This old installation, inherited from equipment manufacturer Michelin, was created in enthusiasm for the rapid electrification of French buses. However, despite an investment of €10 million, only 30 zero-emission buses were produced and delivered during those four years, leading to the closure of the plant.
Why does this choice seem “logical”?
French Economy Minister Bruno Le Maire has been trying to woo BYD executives in recent months, hoping to attract investment to France. Unfortunately, despite his efforts, France lost the competition to Hungary.
Several reasons have been given including the cost of labor, which was perceived as a disadvantage. Electoral and social uncertainty were also identified as major obstacles for BYD.
Indeed, the government’s decision to tie the environmental bonus only to models produced in Europe through the car eco-rating mechanism also influenced BYD’s decision not to invest further in France. After all, what could be more logical, especially since the environmental bonus will surely not last over time.
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Source: Auto Plus
Robert is an experienced journalist who has been covering the automobile industry for over a decade. He has a deep understanding of the latest technologies and trends in the industry and is known for his thorough and in-depth reporting.