Transparent Factory in DresdenImage: VolkswagenAfter a prolonged dispute over production in Dresden, VW clarified the future of the Gläserne Manufaktur at the end of 2024. As planned, the company has since halted vehicle production at the former showcase factory. VW is now converting parts of the site into an innovation centre in partnership with the Free State of Saxony and TU Dresden. Meanwhile, the production halls—once used for the VW Phaeton, later some Bentley models, and eventually electric vehicles—remain idle.However, Chinese portal CarNewsChina, citing a source familiar with the matter, has reported that BYD is in negotiations with Volkswagen to take over part of the Gläserne Manufaktur. The discussions are not focused on the innovation centre but rather the buildings that previously housed vehicle production. According to the report, BYD plans to use these facilities for electric vehicle production. The ‘Made in Germany’ label is expected to boost BYD’s brand recognition in Germany, the source added. However, the report appears to rely on a single source rather than multiple ones.Volkswagen has responded to an inquiry and rejected the information as false. “We firmly reject this speculation,” a spokesperson for Volkswagen Saxony said in a brief statement, which has also been seen by electrive.BYD is already constructing two European plants in Hungary and Turkey. The world’s largest electric vehicle manufacturer is also said to have considered a third plant in Spain, as production costs on the Iberian Peninsula are lower than in other European countries. However, manufacturing in Germany, the heartland of the automotive industry, would carry greater prestige. No decision has yet been made regarding an additional factory alongside the projects in Hungary and Turkey.While other Chinese automakers such as Dongfeng, Xiaomi, and Xpeng are rumoured to be interested in European production capacities within Stellantis plants, there also appear to be companies keen to utilise Volkswagen’s facilities in Europe. In this context, Xpeng and MG Motor are also mentioned—Xpeng is VW’s development partner in China, and MG is part of the SAIC Group, a key joint-venture partner for the Wolfsburg-based company in China. However, these discussions do not seem to involve the Gläserne Manufaktur.carnewschina.com