Made in China

Xpeng will build cars in Austria. China is getting closer than you think

In addition to invading Europe with its high-tech products, Chinese brands now come to produce directly in the Old Continent, but to circumvent tariffs

by Corrado Canali

2' min read

2' min read

The China of the car is getting closer and closer. The latest and most significant example is that of the Xpeng brand which, in order to circumvent EU tariffs on electric cars, has decided to produce them in Graz, known as the Austrian car capital.

Although there are no Austrian car brands in production, cars from other countries are assembled here. Probably so as not to spoil the surprise, Xpeng was careful not to announce at the recent Munich Motor Show that production had started.

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Austria's car capital

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In Graz, the automotive industry is called Magna. In fact, the company's full name is Magna Steyr, because it is heir in part to the historical Austrian holding company Steyr-Daimler-Puch. In its plants in Graz, Bmw, Mercedes and Toyota are assembled. But now, for the first time a Chinese manufacturer, Xpeng, has decided to use the production specifically of its electric models for Europe and as it is known supported with artificial intelligence.

The arrival of the Chinese saves jobs

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For Magna it is a real blessing from heaven, because the contracts with Bmw and Toyota are now expiring and will probably not be renewed due to the car crisis in Europe. The arrival of the Chinese will therefore save the Graz factory and possibly also the jobs of its 12,200 employees. Magna, in particular, had to take over the assembly of Xpeng vehicles coming from China and arriving at the Graz location partially disassembled.

How Xpeng's production is managed

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Prefabricated components arrived in Graz. The models are, therefore, assembled and completed with elements such as axles and engines. And with the latest technology: the G6, for example, is equipped with a high-voltage LFP battery, lithium-iron-phosphate, with 800 volt architecture, free of rare minerals such as cobalt, manganese and nickel, and with a recharging capacity of 451 kW, which means that it can complete 80% of recharging in just 12 minutes. Other models will follow the first G6 and G9.

If Xpeng arrives, KTM will leave

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If the Graz factory has secured the production of Xpeng, you have effectively lost that of KTM, the Austrian motorbike manufacturer that was on the verge of bankruptcy, but was then rescued by the Indian giant Bajaj Auto, which already owned 49.9%. Now KTM is safe and has resumed production at full speed, but has to reckon with new bosses who have realised that labour costs in Austria are too high for their standards. Hence the decision to transfer production to India.

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