Automotive

BYD, talks to produce in Italy. Urso: 'In contact with several houses'.

The executive is planning to attract a new large car manufacturer after the recent moves by Stellantis. The minister: 'I cannot name names'

by Finance Review

27 February 2024

Il numero uno europeo di BYD, Michael Shu al Salone di Ginevra (Photo by Fabrice COFFRINI / AFP)

4' min read

Key points

Local supply chain
The union's reply
New supercar

4' min read

The Chinese giant BYD has been approached by the Italian government as part of the country's effortsto attract a second car manufacturer in addition to Stellantis. "We have some contacts to discuss this," revealed Michael Shu, general manager ofBYD Europe, during the Geneva International Motor Show. However, the need for a second European plant "depends on our sales: we are making very good progress now," Shu added. BYD, which in 2023 has overtaken Tesla as the world's largest producer of electric vehicles, has already initiated plans to build its first European factory in Hungary, ready in 2027.

"We have contacts with several car manufacturers. I can't name names, we have to welcome in the best possible way all those who want to make a productive investment in our country," said the Minister for Enterprise and Made in Italy, Adolfo Urso, on the sidelines of a visit to the former Ilva plant in Taranto.

'We have worked from the very beginning,' the minister continued, 'to improve the instrumentation and attractiveness of the country system for foreign investors who want to focus on Italy as a production site. We are the only car manufacturer. In the other EU countries, historical car producers like ours, there are two, three, four, even five or six producers competing against each other and we hope that this can also happen in Italy in order to strengthen the automotive supply chain, which is the true pride of 'Made in Italy' and which supplies important, significant components. Not only to our car manufacturer, which is Stellantis, but also to other companies that produce abroad'.

In reality, apart from Stellantis, Ferrari (13,663 deliveries), DR Automobile Group (in Molise, over 32 thousand) and Lamborghini (an Italian member of the Volkswagen group) also produce in Italy, but in 2023 the former registered 13,663 cars, the latter 32 thousand, while the Sant'Agata Bolognese company sold over 10 thousand (10,112). Small numbers. Not to mention the millionaires' hypercars, the Pagani, a few dozen a year.

The Meloni government has started to lay the groundwork for attracting a new large car manufacturer to Italy after Stellantis signalled that it might move part of its operations to low-cost countries. Manufacturers are under pressure in their efforts to transition to electric vehicles, whose selling prices are still much higher than combustion engine cars.

Byd, le super tecnologie delle auto cinesi

BYD, as mentioned, has already widely announced, together with the Orban government (which will support the investment), the factory in Hungary to bypass any problems with imports from China, which has come under the Brussels lens (with what outcome still unknown). "It is too early to say when and if a decision on a second plant will be made," said Shu, as BYD also aims to build its own local supply network in Hungary.

Local Supply Chain

"We want to go as deep as possible" with the local supply chain, Shu continued. 'Everything we do is for localisation'. Quite a problem for European car manufacturers, especially Volkswagen, Stellantis and Renault, which mainly target the mass market segment. In recent weeks rumours had circulated about possible alliances, partnerships if not mergers. Denied by the protagonists (Stellantis, Renault). Renault's number one, Luca de Meo, on the other hand, confirmed during the Geneva Motor Show negotiations with Volkswagen for a collaboration on a small electric car as a defensive move by European manufacturers. These are not yet exclusive discussions.

Ue, von der Leyen: "Indagine su sovvenzioni auto elettriche da Cina"

BYD's investment in Hungary came a few months after the EU (in mid-October) launched an investigation into state subsidies to Chinese electric vehicle manufacturers: it could help the company avoid further import tariffs. The manufacturer cooperated with the investigation, Shu noted on the point: 'We have strong products, technologies and flexibility in supply chain management,' said the manager, for whom 'based on the facts, I don't believe the company's success in Europe stems from subsidies'.

The union's reply

"The possible arrival of a second mass producer in Italy would certainly be a good employment and industrial opportunity. However, the results at best would be seen after years and, therefore, it is necessary to focus on the relaunch of the industry already present in our country as a priority'. Thus Gianluca Ficco, national secretary of the Uilm comments on the contacts between the Chinese BYD and the Italian government. 'It is right to act simultaneously on the existing and open up new perspectives,' Ficco added.

Samuele Lodi, national secretary Fiom-Cgil and head of the mobility sector, recalled that 'for years Fiom-Cgil has been highlighting the all-Italian criticality of having only one manufacturer. This has led over the years to a progressive impoverishment of the automotive sector due to the progressive disinvestment of Fca first and Stellantis later. Car production in Italy must aim at one million in terms of volume, in addition to 300,000 light commercial vehicles. In order to reach the goal, Stellantis must invest to guarantee plants and employment, and the government must promote instruments to guarantee the transition of the sector with attention also to all the allied industries and also to attract new manufacturers. This is the only way to guarantee the preservation of the automotive industry in Italy'.

A new supercar

BYD unveiled its most expensive car on Sunday, a 1.68 million yuan (215,000 euro) high-performance all-electric supercar that contrasts with the luxurious thermal options offered by rivals such as Ferrari and Lamborghini.

YangWang U9, la hypercar elettrica da 1.200 cavalli

It is called the Yangwang U9 and will initially be destined exclusively for the Chinese market, the company said at an event streamed live in Shanghai. The car can reach 100 km/h in 2.36 seconds and a top speed of 309.19 km/h.