New Energy Vehicles (NEVs) in China

tphuang

tphuang

Lieutenant General
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CMP said:
No benefits of any kind should be given to Italy. They had an opportunity and blew it.
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BYD needs to do what's best for BYD. And if that's Italy, they will pick Italy.
Lethe said:
Or BYD could choose one of the several European countries that have not recently withdrawn from BRI, such as Hungary (tick), Portugal or Greece...
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Greece has no auto industry to speak of. Hungary made sense because German automakers have been setting up shop there for many years.
BYD has put major resources into Europe Expansion. It needs to make sure wherever it places plants, it will have continued access to local market. There is a reason it went out of its way to say how much production it will localize in Europe.

Yuan up will be formally unveiled in a week and launched next month

https://twitter.com/i/web/status/1762430734864708078

Honor version of Song Pro and Song+ DM-i will be launched early March also

https://twitter.com/i/web/status/1762431530159239575

Tang and Han will be tomorrow
 
C

CMP

Senior Member
Registered Member
tphuang said:
BYD needs to do what's best for BYD. And if that's Italy, they will pick Italy.

Greece has no auto industry to speak of. Hungary made sense because German automakers have been setting up shop there for many years.
BYD has put major resources into Europe Expansion. It needs to make sure wherever it places plants, it will have continued access to local market. There is a reason it went out of its way to say how much production it will localize in Europe.

Yuan up will be formally unveiled in a week and launched next month

https://twitter.com/i/web/status/1762430734864708078

Honor version of Song Pro and Song+ DM-i will be launched early March also

https://twitter.com/i/web/status/1762431530159239575

Tang and Han will be tomorrow
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Just like the US pushed Italy on BRI and they cut ties just like that, the US can and probably will easily do the same on a BYD hub in Italy.
 
tphuang

tphuang

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CMP said:
Just like the US pushed Italy on BRI and they cut ties just like that, the US can and probably will easily do the same on a BYD hub in Italy.
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Meloni was against BRI from the beginning. I don't see why it was a surprise that she left BRI.

As for US forcing Italy to do this and that. Well, if Italy doesn't want BYD to open a factory in their country, then BYD can just pick somewhere else. BYD is not locked into picking Italy. There is a process where many countries are chasing BYD investments and BYD picks where it will have additional factories.

Either way, wherever BYD goes in Europe, it will have a legal system to protect its investment. At worst case, govt reneges on certain details of the detail, BYD can just sell that investment and go somewhere else.

BYD cannot pick investment location purely based on who is friendlier to China. Wherever they go actually needs the local work force that can support a factory. Hungary worked because it already has a large automotive production base due to German automakers presence there
 
vincent

vincent

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tphuang said:
Either way, wherever BYD goes in Europe, it will have a legal system to protect its investment. At worst case, govt reneges on certain details of the detail, BYD can just sell that investment and go somewhere else.
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Tell that to all those Chinese companies that were forced to sell their investments in Canada and the US at fire sale prices. Remember the treatments Xiaomi, BBK and other Chinese companies received in India?
Geopolitical risks are real.
 
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gelgoog

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The Russian owner of Rostselmash had to sell its ownership in Canadian tractor company Versatile for peanuts.
Rostselmash bought the holding company Buhler Industries for CAD$157.3 million and sold it for CAD$60.5 million. After making lots of investments into the company and increasing its product lineup.
 
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tphuang

tphuang

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vincent said:
Tell that to all those Chinese companies that were forced to sell their investments in Canada and the US at fire sale prices. Remember the treatments Xiaomi, BBK and other Chinese companies received in India?
Geopolitical risks are real.
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So you are saying they should just avoid European market then? Just give up a huge 14 million car market because there is a small chance they will have to sell factory at fire sale price?

why even bother exporting anywhere. Clearly, these countries won’t respect property laws and will just take those assets at the earliest possibility.

why stop there, let’s get Catl to give up its battery factory in Germany and whatever other factories Chinese battery makers have been building.

or even better, byd should sell its Lancaster factory. Because you know, that’s actually in America itself.

why bother with a Mexican plant. America can just tell Mexico to close it and they will do it.
 
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henrik

Senior Member
Registered Member
tphuang said:
Meloni was against BRI from the beginning. I don't see why it was a surprise that she left BRI.

As for US forcing Italy to do this and that. Well, if Italy doesn't want BYD to open a factory in their country, then BYD can just pick somewhere else. BYD is not locked into picking Italy. There is a process where many countries are chasing BYD investments and BYD picks where it will have additional factories.

Either way, wherever BYD goes in Europe, it will have a legal system to protect its investment. At worst case, govt reneges on certain details of the detail, BYD can just sell that investment and go somewhere else.

BYD cannot pick investment location purely based on who is friendlier to China. Wherever they go actually needs the local work force that can support a factory. Hungary worked because it already has a large automotive production base due to German automakers presence there
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When you are forced to sell your investment, you cannot receive top price. This is not sound investments at all. You better pick a country with minimum risk to begin with.
 
tphuang

tphuang

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henrik said:
When you are forced to sell your investment, you cannot receive top price. This is not sound investments at all. You better pick a country with minimum risk to begin with.
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And you don’t think byd is capable of pricing in these risks?

as with everything in life, there are risks and rewards. Byd is spending a boat load of money on its dealership network, experience centers, sales channels and brand building in Europe. It has also spent heavily on its transport fleet. It needs to do everything possible to ensure local market access as well as a work force capable of actually operating its very highly motivated plant. It’s hard for me to say who the best candidates are. That’s for byd to do it’s own homework on.
 
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