China’s BYD may be looking to strengthen its foothold in Europe and is in talks with Ford to buy the American automaker’s assembly plant in Saarlouis, Germany.
The Wall Street Journal reports that Ford management in Germany is heading to China next week to discuss the terms of a sale with BYD, citing unnamed sources within the American company. Unfortunately, prices and other terms of the deal are not yet known.
According to the sources, though, the deal is still in the preliminary stages, meaning that it is not certain that the Chinese company will buy Ford’s German plant. Other companies said to be in discussions with the American automaker include Magna International, a Canadian contract auto manufacturer, which may look to buy the plant with the help of an automaker.
Read: Ford Focus To Be Phased Out In 2024, German Plant Axed In Shift To EVs
“We’re investigating various options for the future and sustainable use of the Saarlouis site,” a Ford spokesperson told the WSJ. “As part of this process, we are in ongoing discussions with a number of potential buyers and have nothing further to add at this time.”
Ford previously announced in June that it would be shutting down its Saarlouis, Germany, plant by 2025. The plant currently produces the Focus. The automaker is working to overhaul its European operations as it shifts over entirely to electric vehicle production. Production of those vehicles, though, will be handled by its plants in Valencia, Spain, and Cologne, Germany.
For BYD, meanwhile, the move would mark an important step for its European expansion. Already China’s biggest electric vehicle manufacturer, the company has begun to sell some passenger vehicles and buses in select European markets, and this move could presage further growth.
