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Backstabbing the EU, Poland decides to bring in Geely's electric car production line!

2024-06-24


The European Union announced it would impose a maximum tariff of 38.1% on imported electric vehicles from China, and Polish President Duda visited China. What are you doing here? Let's talk about the introduction of Chinese electric vehicle production lines. Duda personally visited Geely's factory and wanted to invite Geely to build a factory in Poland. Why Geely?


There are two main reasons: First, BYD and Chery have been taken over by Hungary and Spain. BYD is located in Hungary, and Chery is located in Spain. Chery in particular, its Spanish factory has already started mass production, and BYD expects to build a Hungarian factory in 2025. SAIC MG has factories in India and Thailand, and exports to Europe can withstand European Union tariffs.


Second, Geely's European roots are not shallow, including Volvo and BelGee, a joint venture brand in Belarus. Poland doesn't want to wait any longer, wait any longer, miss it, and there will be no more. Moreover, the main purpose of the European Union's tariffs on Chinese cars is to let Chinese car companies build factories in the European Union. French President Macron also said that BYD is welcome to build factories in France.

As far as Poland was concerned, it was highly similar to Hungary. It did not have a strong vehicle group, but as a complement to the German and French automobile industries, it had built a complete parts industry. That was to say, Hungary and Poland, if they wanted to maintain their supply chain advantages, they had to follow the vehicle manufacturers. For example, in the era of fuel vehicles, German and French cars were very powerful, so Poland could supply them with parts.


But now, in the era of new energy. If Poland does not transform and continue to supply parts for German and French fuel vehicles, then German and French fuel vehicles will be finished, and Poland will also be finished. The best choice is not to put eggs in one basket. As a parts supplier, who provides or not? Introducing Geely's electric vehicle production line can help Poland build a new supply chain of new energy vehicles.

In the transition from fuel vehicles to electric vehicles, the layout in advance can not only eat the final dividends of the fuel vehicle industry but also open up the electric vehicle industry and seize a better position. Why are not Germany and France, but Hungary and Poland, the first to embrace China's electric vehicles? This is because the two of them are small and easy to turn around, it is nothing more than a new big brother. But Germany and France want to be their big brother. In the field of fuel vehicles, Germany and France have to face millions of workers, food, and clothing, and accelerate the transformation to seize the trend of electric vehicles.


But the difficulty is that German cars do make a lot of electric models, such as the BMW i3, and Mercedes-Benz EQ series, Porsche also has electric Taycan, Volkswagen ID series, etc. However, these electric cars are mainly based on the Asian supply chain. For example, Porsche electric Taycan is equipped with South Korean LG batteries, Volkswagen ID series, BMW i3, and Mercedes-Benz EQ series, most of them choose China's Ningde era battery.

This means that German cars have handed over the core battery industry. As for smart driving technology, chip technology, lidar technology, etc., they are not the strengths of the German auto industry. In the core supply chain, German cars have formed a serious dependence on China. French cars are even flatter, choosing to acquire the equity of leapmotor and become the largest shareholder of leapmotor. After taking leapmotor, Stellantis came to a reverse output, using leapmotor's electric vehicle technology to set up leapmotor International to sell Chinese electric cars overseas.


At the same time, Stellantis can also absorb the electric technology of leapmotor and quickly catch up with the international trend. The most anxious people now are not Poland and Hungary, the middle and lower industrial countries of the European Union automobile industry. They can mix with anyone, as long as they can hug their thighs and make money. But Germany is not the only one. Germany has 83 million population and can be ranked among the developed countries in the first camp in Europe. More than 10% of GDP comes from the automobile industry, which contributes millions of jobs and creates 12% of tax revenue. It can be said that the automobile industry is the lifeblood of Germany.

But the European Union has a fatal weakness. It adopts the principle of unanimity, and as long as there is a vote against it, many policies cannot be implemented. This allows China to seize the opportunity. You will find the introduction of Chinese car factories in middle-sized countries within the European Union, such as Spain, Hungary, and Poland. They are not the first camp of the European Union, but they all have a solid industrial base, such as steel, machinery, electronics manufacturing, etc.


Italy suffered a big loss when it scrambled for the Chery factory. Italy hesitated, and Chery turned to Spain. If Italy missed the Chery factory, there may not be a second Chinese car company going to Italy to build a factory in the next decade. But with more decisive determination, Spain became the first member of the European Union to eat crabs.

With the three buddies of Spain, Hungary, and Poland, it will only become more difficult for the European Union to restrict Chinese cars in the future. The captain has always supported Chinese cars to build factories overseas. The reason is simple:


First, if you don't go, they will raise tariffs and close the market, and you will not be able to sell a single car. Without overseas orders, Chinese car companies can only roll in at home country, not overseas at all.


Second, Europe is a developed market comparable to the United States. Without taking Europe, it will be difficult for China's high-end and internationalization of automobiles to go through. Affordable cars, we sell them to Asia, Africa, Latin America, and Russia, but they can still afford them. But for high-end cars, the purchasing power of these countries is quite limited.

If you want to become a global top auto industry power, you must not only take over Asia, Africa, and Latin America but also take over Europe, America, and Australia. Don't think that Chinese car companies going overseas to build factories are transferring domestic jobs. If you don't go overseas to build factories, they won't let you sell them, and you still don't have orders. If you don't have orders, you still have no jobs. Building factories overseas can also create some high-paying management and technical positions for China. Just like Apple, the highest-paying R & D departments and design departments are mainly located in the United States, and only low-paying foundries are located overseas.


When Chinese cars go overseas, building overseas factories is an indispensable step.


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