So Chinese manufacturers want to produce electric cars in Europe

They fear duties and have to shorten the supply chain. Magna Steyr admits: 'They are all talking to us'

Magna Steyr assembly line

By: Francesco Barontini

Published by: Brian Potter

Jun 1, 2024 at 5:06am ET

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Chinese manufacturers are pushing to conquer substantial market shares in Europe. They have realised that in order to reach their ambitious sales targets, they have to shorten the supply chain. That is why they want to come and produce locally.

A key role could be played by Magna Steyr, an Austrian giant specialising in the production of cars for third parties, which has confirmed that it has started several negotiations with many manufacturers from the Land of the Dragon.

Tariffs are feared

Among the reasons that are driving production in Europe is the fear that the Old Continent's authorities will adopt protectionist tariffs that could harm precisely those who produce cars in China.

Magna, for its part, needs new customers. After freezing production of the Fisker Ocean because of the financial problems the American manufacturer is facing, it has room for new cars, at least until 2026 when it should start producing Ineos electric off-roaders.

2023 Fisker Ocean three-quarter front view

The Fisker Ocean was manufactured in Austria

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Possible manufacturers

At the moment, Magna Steyr, part of the Magna International group, builds the G-Class for Mercedes and the I-Pace for Jaguar. There is therefore a desire to expand the business. This was stated by company president Roland Prettner at a recent press meeting in Graz, where Magna Steyr has its headquarters.

BYD Ocean M Concept

BYD Ocean M Concept: cheap car that could be produced (as well as sold) in Europe

Prettner, who emphasised that producing with Magna Steyr could enable Chinese manufacturers to acquire strong know-how, did not name names, but among those present it was thought that ongoing negotiations included those with NIO, XPeng, BYD and Zeekr, which already sell their cars in Europe. The Chery group, which is entering Europe with its Omoda and Jaecoo brands, is not to be ruled out, even though, after buying a factory in Spain, it might choose to commit itself.

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