NIO could be interested in acquiring the Audi plant in Brussels

The European Union’s imposition of special tariffs on imports of cars manufactured in China is leading a number of Chinese manufacturers to consider building new production plants in Europe or buying one of the existing ones, in order to avoid these additional costs.

One of these manufacturers is NIO, which according to Belgian media, plans to submit a formal offer to acquire the Audi plant located in Brussels before the end of this week. The Chinese manufacturer NIO apparently intends to use the plant fully to assemble vehicles in Europe, thereby avoiding the special tariffs that are added to the existing 10 percent.

As we reported in a recent article, Audi, for its part, has decided to get rid of the Brussels plant, as it does not believe it will be of any use to the company in the future. Therefore, NIO’s offer, if realistic, may be viewed very favourably by the German manufacturer.

Complications ahead

Relations between the two companies have not, however, been the best in recent years, and it is unknown how this might affect the negotiations. Audi sued NIO in Germany not long ago over the names under which it intended to market its vehicles in the European market, as it considered them too similar to those it had been using. A lawsuit it ultimately won in court, forcing NIO to make amends.

NIO is not, however, as we have already mentioned, the only Chinese manufacturer interested in establishing itself in Europe. BYD is already building its first plant in Hungary, near Szeged, with an annual production capacity of 300,000 vehicles, and is also looking for a location for a second plant. Meanwhile, everything points to SAIC Motor potentially establishing itself in Spain to manufacture vehicles for MG Motor, specifically in Galicia, although other locations outside Spain such as Hungary or the Czech Republic are not ruled out due to their lower labour costs.

Chery, on the other hand, has already signed an agreement with Ebro EV-Motors in Barcelona to produce the electric vehicles of the Omoda brand, with the aim of reaching an annual production capacity of 150,000 vehicles from 2029. Meanwhile, Leapmotor has opted for a joint venture with Stellantis, manufacturing its small EV T03 in Poland alongside models from Jeep and Fiat.