Volkswagen has dismissed reports suggesting that BYD is in talks to acquire part of its Gläserne Manufaktur facility in Dresden, rejecting the claims as unfounded.
The former showcase factory, located in Dresden, previously produced models including the VW Phaeton and later electric vehicles, but has ceased car production as part of a restructuring plan finalised in late 2024. Volkswagen is now repurposing sections of the site into an innovation centre in collaboration with the Free State of Saxony and TU Dresden, while the former production halls remain unused.
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Speculation emerged from CarNewsChina, which cited a single unnamed source claiming that BYD was negotiating with Volkswagen to take over parts of the facility for electric vehicle production. The report suggested that producing vehicles in Germany could enhance BYD’s brand positioning through the “Made in Germany” label.
Volkswagen rejected the report in response to media inquiries. “We firmly reject this speculation,” a spokesperson for Volkswagen Saxony said, without providing further details.
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BYD is currently expanding its manufacturing footprint in Europe, with new plants under development in Hungary and Turkey. The company has also reportedly considered additional production capacity in Spain, where costs are lower than in other parts of Europe. Establishing production in Germany, however, could offer reputational advantages given the country’s position as a core automotive hub.
Separately, other Chinese automakers—including Dongfeng Motor, Xiaomi, and Xpeng—have been linked to potential use of European production facilities, particularly within Stellantis plants. Additional speculation has also mentioned Xpeng and MG Motor in connection with Volkswagen’s broader European footprint, though not specifically the Dresden site.
Source: Electrive
