They Called Me a Traitor - When Europeans Join Chinese Automakers

Welcome to Issue #81 of The German Autopreneur!

"How can you work for a Chinese automaker without feeling guilty? Aren’t you putting your personal gain over Europe’s industrial future?"

This message appeared in my inbox last week.

The trigger? My LinkedIn posts about Xiaomi hiring top talent from BMW. And my recent meeting with Maria Grazia Davino. She’s the Italian executive now leading BYD’s European operation.

The core accusation is clear: Working for a Chinese automaker means betraying Europe.

This debate is tearing the European auto industry apart. Even consultants hide their work with Chinese companies. They fear public backlash. Or losing their European clients.

Time to dive into this.

The "Betrayal" Accusation

The concern is understandable. European professionals help Chinese manufacturers capture market share on their home continent.

They pass their knowledge to competitors. This threatens jobs and weakens domestic industry.

So far, the theory.

The problem? This view ignores the reality of the global automotive industry.

Plot twist: Europeans have taught China how to build cars for decades.

Europeans Have Taught China How to Build Cars

China's automotive rise was built on European expertise from the very beginning. The story starts in 1984.

Volkswagen was among the first Western automakers to enter China. The deal: Market access for technology transfer.

For nearly 40 years, Volkswagen dominated the Chinese market. BYD only overtook them in 2023.

But it wasn't just Volkswagen. Mercedes, BMW, Porsche, and Audi followed soon. All these European brands made billions in China. And those profits funded thousands of jobs back in Europe.

Meanwhile, a wealthy middle class emerged in China. Millions of Chinese could afford their very first car. And China became the world's largest car market.

In 2024, over 31 million cars were sold there. And in Europe? Only 13 million.

China had a problem. They became the world's largest car market. But they earned almost nothing from it. All the profits went to Japan, Korea, and Europe.

China wanted a share of their own market’s profits. So they built their own car industry.

And from the beginning, they relied on European expertise.

Look at Wolfgang Egger. The former Audi chief designer now leads BYD's design. His design shaped BYD's success.

Klaus Zyciora designs for Changan. Stefan Sielaff for Geely. This pattern has been happening for decades.

European automakers deliberately cooperated with China. Mercedes and BYD built Denza. Volkswagen partners with SAIC and FAW. BMW has a joint venture with Brilliance. Stellantis joined forces with Dongfeng.

The deal was simple. Europeans got market access. China got technology. Both sides were happy.

So the current trend isn't new. It's just happening in Europe now, not just in China.

What Does "European" Even Mean Today?

The idea of "pure European" auto companies is a myth.

Chinese investors own almost 20% of Mercedes. BAIC holds 10%, Geely’s founder owns another 10%.

Geely owns Volvo since 2010. SAIC owns MG. Mercedes and Geely jointly run Smart.

So what is "domestic" and what is "foreign" today?

Is a Volvo engineer in Sweden working for China or Europe? Is someone at Mercedes a "traitor" when Chinese investors own 20%?

By the way: Nobody questions "betrayal" when Germans work for Google or Apple in Munich instead of for SAP. Or for Toyota instead of Volkswagen.

So why this black-and-white thinking with Chinese automakers?

China Creates European Jobs

Chinese automakers aren't just selling cars in Europe. They're investing here:

• BYD builds plants in Hungary

• CATL built a battery factory in Germany

• Xiaomi & Li Auto are opening R&D centers in Munich

These investments create thousands of European jobs.

The German city Schweinfurt is actively pursuing an Xpeng factory. After job cuts at ZF, they need new employers.

The mayor of the city even says: "We need production here."

For him, these Chinese companies mean jobs, not threats.

Why Europeans Choose Chinese Employers

Most people think it's just about money. It's not.

Chinese automakers offer what many European companies can't: A clear direction.

They move decisively toward the future. They let you build something new. You can shape tomorrow instead of defending yesterday.

At European automakers, many feel lost in transformation. There's no clear vision everyone believes in.

Plus, European manufacturers are cutting thousands of jobs. It's hard to feel loyal when your employer wants to let you go.

And don't forget: The exchange goes both ways.

Xiaomi hired several BMW experts. This shows: They do create high-quality jobs in Europe.

Meanwhile, thousands of Chinese work for Volkswagen, BMW, and Mercedes. Nobody calls them "traitors to China."

My Take

The "betrayal" question misses the point.

It ignores how the auto industry actually works.

We depend on China. Over a third of Volkswagen, BMW, and Mercedes cars are sold there. And we need Chinese technology. Especially their batteries and software.

European brands have Chinese shareholders. Chinese brands employ European talent. This has always been the case.

And there is more: The brain drain isn’t the cause of our problems. It's a symptom.

When European companies cut jobs instead of creating them, talent goes elsewhere. Simple as that.

Do we really want to dictate who people can work for? That's part of competition.

European automakers made billions in China for decades.

Now we want to block Chinese manufacturers from Europe? And call Europeans who work for them "traitors"? That's hypocritical.

We can't profit from China's market, then complain when they enter ours.

I think we should see China as a partner. Not an enemy.

There are enough global challenges we can only solve together.

Transforming the European automotive industry is one of them.

We definitely won't achieve that with nationalism and fingerpointing.

By the way: Europeans working for Chinese automakers actually benefit Europe. They learn there. And someday bring the knowledge home.

This is exactly how China learned from us for decades. Just in reverse.

That's all for today.

Feel free to reply to this email with your thoughts.

Until next week,
— Philipp

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