BYD may take over part of Volkswagen’s Transparent Factory in Dresden
BYD eyes Volkswagen’s Transparent Factory in Dresden for EV production
BYD may take over part of Volkswagen’s Transparent Factory in Dresden
BYD is reportedly in talks to use part of Volkswagen’s Dresden site for EV production, a move that could give the Chinese brand local EU output and a Made in Germany label.
2026-05-01T12:17:02+03:00
2026-05-01T12:17:02+03:00
2026-05-01T12:17:02+03:00
BYD may be looking at a symbolically important site in Germany: part of Volkswagen’s Transparent Factory in Dresden. According to CarNewsChina, the Chinese company is in talks to take over the second half of the plant and use it to build electric vehicles.There is no official confirmation for now. BYD declined to comment, while Volkswagen did not respond to the outlet’s request. Even so, the idea fits neatly with recent comments from VW chief executive Oliver Blume. On April 30, he said that sharing underused European factories with Chinese carmakers could be a “clever solution” for cutting capacity and costs.The Transparent Factory opened in 2002 as a prestige production site for the Volkswagen Phaeton. It later handled Bentley models, the e-Golf and the ID.3. Volkswagen stopped vehicle production in Dresden at the end of 2025. In recent years, the plant assembled about 6,000 ID.3s annually and employed around 205 people.Part of the factory is already planned to become an innovation hub together with the state of Saxony and TU Dresden. German media reported that the university could lease almost half of the space, while conversion costs were being discussed at around €50 million.For BYD, a German site would offer two immediate advantages: local production inside the EU and the powerful Made in Germany label. At present, BYD passenger cars for Europe are imported from China and face the standard 10% duty, as well as an additional EU anti-subsidy tariff of 17%.BYD had previously looked at Spain as a possible location for a second European plant. At the same time, the company is already building factories in Hungary and Turkey. Germany is also politically attractive: it voted against the EU’s additional tariffs on Chinese electric vehicles, a position seen in Beijing as notably more favourable than that of countries that supported the restrictions.Sources indicate that Xpeng and SAIC MG are also looking at Volkswagen’s European capacity, though no decisions have been made. Xpeng already works with VW in China and builds cars in Europe through Magna Steyr in Austria.If the Dresden deal goes ahead, BYD would gain more than an EU production site. It would secure a rare image asset: manufacturing in Germany, at a plant Volkswagen once built as a showcase for its own technology.
BYD, Volkswagen, Transparent Factory, Dresden, electric vehicles, EU production, Made in Germany, tariffs, Xpeng, SAIC MG
2026
Michael Powers
news
BYD eyes Volkswagen’s Transparent Factory in Dresden for EV production
BYD is reportedly in talks to use part of Volkswagen’s Dresden site for EV production, a move that could give the Chinese brand local EU output and a Made in Germany label.
Michael Powers, Editor
BYD may be looking at a symbolically important site in Germany: part of Volkswagen’s Transparent Factory in Dresden. According to CarNewsChina, the Chinese company is in talks to take over the second half of the plant and use it to build electric vehicles.
There is no official confirmation for now. BYD declined to comment, while Volkswagen did not respond to the outlet’s request. Even so, the idea fits neatly with recent comments from VW chief executive Oliver Blume. On April 30, he said that sharing underused European factories with Chinese carmakers could be a “clever solution” for cutting capacity and costs.
The Transparent Factory opened in 2002 as a prestige production site for the Volkswagen Phaeton. It later handled Bentley models, the e-Golf and the ID.3. Volkswagen stopped vehicle production in Dresden at the end of 2025. In recent years, the plant assembled about 6,000 ID.3s annually and employed around 205 people.
Part of the factory is already planned to become an innovation hub together with the state of Saxony and TU Dresden. German media reported that the university could lease almost half of the space, while conversion costs were being discussed at around €50 million.
For BYD, a German site would offer two immediate advantages: local production inside the EU and the powerful Made in Germany label. At present, BYD passenger cars for Europe are imported from China and face the standard 10% duty, as well as an additional EU anti-subsidy tariff of 17%.
BYD had previously looked at Spain as a possible location for a second European plant. At the same time, the company is already building factories in Hungary and Turkey. Germany is also politically attractive: it voted against the EU’s additional tariffs on Chinese electric vehicles, a position seen in Beijing as notably more favourable than that of countries that supported the restrictions.
Sources indicate that Xpeng and SAIC MG are also looking at Volkswagen’s European capacity, though no decisions have been made. Xpeng already works with VW in China and builds cars in Europe through Magna Steyr in Austria.
If the Dresden deal goes ahead, BYD would gain more than an EU production site. It would secure a rare image asset: manufacturing in Germany, at a plant Volkswagen once built as a showcase for its own technology.
