[Mobility Column] Is the owner of European car factories now China? China's rise in mobility, dreaming of "Made in Europe"

*This content was translated by AI.

The map of the European automotive industry is changing rapidly. The era of "Eastward Advance," when Western brands established production bases in China to explore new markets, has ended. Now, the era of "Westward Advance," where Chinese companies acquire idle factories in Europe or establish local production lines, is fully underway.

Evidence of this is being captured everywhere. Great Wall Motor (GWM), a powerhouse in SUVs and pickup trucks in China, has selected Romania as the site for its first complete vehicle production plant in Europe and is in final negotiations with the government. Stellantis and Dongfeng Motor have agreed to mutually open their factories in Europe and China to secure production bases and have begun detailed discussions. The most symbolic event is the negotiations between BYD and Volkswagen. BYD, the world's largest electric vehicle manufacturer, is pursuing plans to acquire or lease part of Volkswagen's "Transparent Glass Factory" in Dresden, Germany, which is regarded as the technical pride of the German automotive industry. The major news that has broken out in the past month shows that this global shift in hegemony is no longer speculation but reality.

The essence of this change can be analyzed from three aspects. First, the phenomenon of technological reversal is becoming entrenched. In the past, Chinese companies established joint ventures to learn Western internal combustion engine technology, but now European companies are opening their factory doors to adopt Chinese electric vehicle platforms and battery technology. Second, the paradox of protectionism is emerging. When the European Union (EU) imposed high tariffs on Chinese-made electric vehicles, Chinese companies responded by establishing production bases locally in Europe to avoid tariffs while simultaneously creating local jobs. Third, the redefinition of production efficiency is taking place. The bloated cost structures of European manufacturers have reached a limit that is no longer sustainable, and Chinese companies are seizing this opportunity to rapidly expand their production bases in Europe.

This phenomenon goes beyond a shift in the competitive landscape of the automotive industry; it can promote the restructuring of the industrial ecosystem and employment structure in Europe, as well as the reorganization of global supply chains. The localization strategies of Chinese companies are further strengthening their influence in Europe while suggesting that the traditional advantages of the European automotive industry are gradually weakening. Moreover, the cooperation model between Western manufacturers and Chinese companies shows the possibility of a new industrial symbiosis that goes beyond the existing competitive landscape. On March 23, the remarks of Mercedes-Benz Group AG Lee Sa-hoe (Chairman) and CEO Ola Källenius hinted at a cross-section of the restructuring of the Chinese and European automotive industries. He said, "Every soccer player dreams of the Champions League, but the Champions League in the automotive industry today is China." This is not just an acknowledgment of China's technological capabilities but a higher evaluation of them.

Now, for the European automotive industry to maintain its competitiveness, it must not rely solely on protectionism or cost reduction. Instead, investment and innovation in key future vehicle technologies such as electric vehicles and batteries, as well as flexible industrial restructuring, are needed. Furthermore, to ensure the sustainability of employment and the industrial ecosystem in Europe, a strategy is required to balance cooperation and competition with Chinese companies.

Ultimately, the entry of Chinese automotive companies such as Geely, GWM, Dongfeng, and BYD into Europe is not a temporary phenomenon but a symbolic scene of a massive paradigm shift from internal combustion engines to electrification. The era in which Europe invested in the huge Chinese market, sold products, and shared profits is over. Soon, the scene of Europeans driving Chinese-brand cars made in German or Spanish factories will unfold. It is more urgent than ever to read the flow of change accurately and implement strategic responses to prepare for the future.

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*This content was translated by AI.