...the whole idea of the EU imposing tariffs on Chinese EVs is to make them uncompetitive, stall their entry into the EU and buy EU car makers some time to ramp up their EV rollout plans.
...yet we see here prospect of Nio (Chinese EV maker) buying Audi (which is part of VW) factory to get around the tariffs and gain immediate ability to produce EVs in Belgium. Which makes the tariffs pointless other than compelling Chinese FDI in EU. But that does not help EU car makers!
...it makes you wonder if the EU car makers are even serious about defending their market share within their own turf. The wheels appear to be falling off German auto makers.
Electric vehicle maker Nio is considering acquiring Audi’s factory in Belgium as part of its strategy to establish local production in Europe and avoid European Commission tariffs on imported Chinese EVs.
If the additional duties are confirmed by the 27 EU states next week, Nio will face a tariff of over 20% on each car. The company currently operates two manufacturing plants in Hefei, China, with a third under construction.
Citing reliable sources, local media reported Wednesday that a delegation from the Shanghai-based EV maker has recently visited the factory and is preparing a bid, which must be submitted to the Volkswagen Group by next Monday, September 23.
In Europe, the company, led by William Li, has an assembly plant for its battery swap stations. Once ready, the stations are shipped to Nio’s five markets across the continent.
Located in southwest Brussels, the plant has currently 2,910 employees and unions expect two major rounds of layoffs over the next months as the Volkswagen Group decided to halt production due to “low demand for the Q8 e-tron SUV, high costs, and logistical challenges”.
About 1,500 jobs are expected to be cut next month and another 1,100 in May 2025.
Earlier this month, factory management confirmed during a staff meeting that neither Audi nor any other Volkswagen Group brand would be assigning the assembly of a new model to the facility.
Earlier this week, Niostarted the deliveries of its flagship SUV EL8 in Europe. Initially launched in China in late 2022, the EL8 has been refreshed with the new Executive variant priced in Germany at €108,900 with battery included and at €87,900 with the Battery as a Service system.
Next year, Nio will unveil its second sub-brand. Named Firefly, the brand targets a cheaper market segment than the sub-brand Onvo focusing on smaller vehicles. The first model has been spotted in road testing both in China and in Europe over the last months.
“So we will focus on the existing five European markets that we have already started. We also know that to establish Nio, such a premium brand in the European market, will also take a longer time and we are very patient with that,” Li stated on the earnings conference call.
Poland, Spain, Italy and Hungary are among the countries where the Chinese manufacturers are eyeing to produce vehicles for the European markets.
