BYD megafreighter in Argentina Chinas South American invasion puts VW under pressure

For days, the Argentinean media shared in the excitement. And described the impressive dimensions of the freighter: There is space for up to 7000 vehicles on the "BYD Changzhou". The huge ship with a white hull is adorned with the three red letters of the BYD brand name visible from afar. When the giant freighter from China, specially designed to transport Chinese vehicles, finally docks at the port of Zárate in the province of Buenos Aires, the BYD $1211 (-1,6 %) brand has finally arrived in Argentina.

News programs, newspapers and portals report in detail. The event also has great significance for German and European car manufacturers: the strong competition from Asia has now also launched a major attack on the vehicle market in South America.

The arrival of the BYD freighter, which was accompanied by media coverage, coincided almost simultaneously with the failure of the long-negotiated EU-Mercosur free trade agreement in the EU Parliament. Far-left and far-right MEPs, together with the Greens and parliamentarians mainly from France, had voted in favor of sending the agreement, which the industry had been longing for, to the European Court of Justice for review.

Although the agreement is to enter into force for the time being, it is legally in a gray area. However, the EU Parliament's signal to the markets was more devastating, as extreme political forces now appear to be able to steer Europe's economic policy destiny. The MEPs thus gave the competition from China an unexpected gift.

"Europe is weakening itself with the EU Parliament's decision at a time when geopolitical stability and reliable international partnerships are more urgent than ever. Instead of creating clarity for free trade and a rules-based world order, the Parliament is sending a signal of uncertainty and self-blockade," says Hildegard Müller, President of the German Association of the Automotive Industry (VDA).

"The EU must not sabotage its own trade objectives and recklessly jeopardize its credibility as a partner. The benefits of the agreement are clear."

Moritz@leveragegrinding

No. That's exactly why it's nonsense to soften our food regulations for the South American countries in return for a free trade agreement. We won't export much more in return because China is dominant there.

Because this has been on the table for so long, there are a number of studies that estimate our realistic economic growth at 0.2%. And then throw beef quality assurance overboard so that they can import it here without end (example).

We need to develop new products and offer better ones. Mercusor almost exclusively benefits South America, yet the media are now beating the drum as if the Chinese factories there were not already making German cars less attractive than any tariff surcharge.

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Aktien4Million@Aktien4Million

@leveragegrinding Nonsense - the free trade agreement benefits Germany in particular. Incidentally, the import limits for agricultural goods also speak against domestic farmers being disadvantaged anywhere here

@Aktien4Million Have you read what I wrote?

The expected increases are in the range of less than 0.5%

Exports from South America, on the other hand, are expected to grow by at least 2.

These are huge agricultural countries and we want to lower our requirements in the agreement so that they can supply more. I have no idea how you come up with your points.

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jkb92@jkb92

It's a bit ridiculous and almost pitiful how desperately the German press (above all HB, in this case BI) is writing against BYD and China's automotive industry. They write about invasion and every failure, no matter how small, is trotted out page after page haha.

All in an attempt to save an immobile, backward-looking and short-sighted German (and European) industry...

BYD mega-freighter in Argentina: China's South American "invasion" puts VW under pressure