There have been a growing number of investments by Chinese firms in the European auto market in recent months. Photo credit – Pixabay
Chinese auto investors turn from USA to Europe
Interest amongst Chinese auto investors has been growing in Europe whilst declining in the USA.
That’s according to Reuters news, who report that ”intense U.S. scrutiny of their deals under the Trump administration” could be backfiring and discouraging Chinese investors from making deals in America.
The news is certainly evidenced by our own stories, which have detailed a number of investments by Chinese firms in the European auto market in recent months.
For example, yesterday we reported that Contemporary Amperex Technology – a Chinese leader in battery technology for electric cars – is apparently planning to choose Germany to be the location of its first European factory.
Previously, it had been revealed that the firm was considering three countries to host the facility.
The company already has plans in its home market to drastically increase its productions capacity of batteries in order to meet demand from manufacturers.
It is expected that any future European factory would serve the needs of local manufacturers.
Furthermore just two weeks ago, Grammer, a leading supplier of parts for the automotive industry, received a buyout offer from Chinese firm Ningbo Jifeng Auto Parts.
The deal, which could have a value in excess of €700 million, would see Ningbo take control of Grammer.
At the moment, the Chinese firm owns just over 20 percent of the company.
We understand that Grammer’s board has agreed to the deal.