BYD chooses Hungary for its first European factory, a blow to France.Chinese automaker BYD announced it will build its first European factory in Hungary, a decision that is a blow to France, which had made attracting BYD to its territory a priority.
Hungary was chosen for several reasons, including its skilled and affordable labor force, its favorable tax climate for foreign investment, and its proximity to European markets.
France’s failure to attract BYD is a blow to the French automotive industry, which is already struggling. France has lost several plants in recent years, and BYD’s arrival could have helped to revitalize the sector.
The Hungary plant is expected to create around 10,000 jobs, which would have been a major boost for the French economy.
The BYD announcement is a lesson for French policymakers. It shows that France needs to be more competitive to attract foreign investment.
The French government needs to work to reduce the cost of labor in France, simplify administrative procedures, and improve the tax climate for businesses. France also needs to focus on sectors where it has a competitive advantage.
The BYD announcement is a setback for France, but it is also an opportunity for Hungary. The BYD plant is expected to boost the Hungarian economy and create jobs.