The Surprise Move: BYD Ready to Enter Volkswagen's Home

BYD is reportedly in talks with Volkswagen to acquire part of the Dresden plant, known as Gläserne Manufaktur. According to sources close to the matter, the Chinese group could invest in the site and use a portion of the plant to produce electric vehicles intended for the European market. The other half of the facility is expected to be repurposed into an innovation center, developed in collaboration with the state of Saxony and TU Dresden.

A potential plant in Germany would represent a strategic opportunity for BYD also in terms of image, thanks to the possibility of associating its products with the "made in Germany" label. The company is already strengthening its presence in Europe, as evidenced by sales in Germany, which have significantly increased year-on-year.

In the past, BYD had considered Spain as a potential location for a second European plant, attracted by lower costs and favorable infrastructure. Currently, the group is already constructing plants in Hungary and Turkey.

BYD and Volkswagen: Further Details on Collaboration

The political and economic context in Europe influences industrial choices. Germany has opposed additional tariffs from the European Union on Chinese electric vehicles, a position positively viewed by Beijing. Conversely, some countries in favor of tariffs would have lost production opportunities. The EU is considering possible alternatives, such as the introduction of minimum pricing instead of tariffs.

In addition to BYD, other Chinese manufacturers, such as Xpeng and MG, are also exploring the possibility of utilizing Volkswagen plants in Europe. Xpeng is already collaborating with Volkswagen in China, while MG is linked to the SAIC group, a historical partner of the German manufacturer. Automotive production at the Dresden facility was halted at the end of 2025.

In the past, the plant assembled models like Phaeton, e-Golf, and ID.3, with relatively limited recent production. The site is now subject to repurposing plans, with investments estimated at around 50 million euros. Volkswagen's CEO, Oliver Blume, stated that sharing unused production capacity with Chinese companies could be an effective solution to reduce costs and overcapacity.