BYD, the Chinese electric vehicle maker backed by Warren Buffett, is reportedly in talks with Ford to acquire a manufacturing plant in Germany, The Wall Street Journal reported late Tuesday.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The WSJ, citing people familiar with the matter, states that Ford officials from Germany are planning to travel to China next week to hold talks regarding the sale of the plant, which currently produces Ford's Focus compact model.
Top Broker Recommendation
- eToro Top stock trading platform with 0% commission – Read our Review
- Tickmill Regulated by the FCA – Read our Review
- Admirals (Admiral Markets) More than 4500 stocks & ETFs available – Read our Review
- Spreadex Spreadex has been around for a long time – Read our Review
- IG Top-tier regulation – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
The financial terms of the deal were not disclosed.
The factory is the Saarlouis plant, with vehicle production scheduled to eventually end in 2025, the report said. However, they warned that talks are still at a preliminary stage and could ultimately fall through.
Various vehicle firms have been trimming expenses recently as rising expenses pressure automakers. A further headwind for EV manufacturers has been the reported slowdown in demand, forcing many to cut prices, weighing on margins.
The WSJ also stated that Ford also has interest in the plant from around 15 potential investors
In October, BYD told Reuters it was looking to produce electric cars in Europe, although it currently produces electric buses at a plant in Hungary.
Separately, it was reported on Monday that Germany's IG Metall union said Ford intends to cut up to 3,200 jobs across Europe and move some product development work to the US.
However, the union is promising action that would disrupt the company across Europe if it goes ahead with the cuts.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.