Ford in Talks to Sell German Factory to Chinese EV Maker BYD

[Asia Economy New York=Special Correspondent Joselgina] On the 24th (local time), the Wall Street Journal (WSJ) reported, citing sources, that U.S. automaker Ford is negotiating to sell its German production plant to Chinese electric vehicle manufacturer BYD.

According to the report, Ford executives plan to visit China next week to discuss the potential sale of the Saarlouis plant in Saarland, western Germany. Ford had previously decided to cease operations at this plant by 2025.

[Image source=Reuters Yonhap News]

The sale price and other terms have not been disclosed. The news of BYD's acquisition consideration has attracted more attention following Tesla's active moves in Europe, such as producing electric vehicles at its new factory near Berlin.

WSJ conveyed that negotiations with BYD are still in preliminary stages and may fall through, while Ford is currently gauging interest from as many as 15 potential investors. According to sources, these investors range from manufacturers like BYD to financial investors who may collaborate with manufacturing companies.

Ford's decision to halt operations and sell the Saarlouis plant is part of its transition to electric vehicles in the European market. Ford announced this policy last June and stated that after 2025, it will focus on electric vehicle production at its Valencia plant in Spain and Cologne plant in Germany. The Saarlouis plant employs about 4,600 people. Currently, Ford produces the Focus compact model at the Saarlouis plant.

BYD is the top company in sales in China, the world's largest electric vehicle market. WSJ evaluated that if BYD acquires the Saarlouis plant, it could serve as an opportunity to further enhance the competitiveness of Chinese electric vehicles in the European market. BYD is already exporting some electric vehicles, such as buses, to Europe. Last year, BYD sold 1.86 million electric and plug-in hybrid vehicles, which is three times the amount of the previous year, WSJ added.

This content was produced with the assistance of AI translation services.