In the 1980s, Western car companies like Jeep, Volkswagen, and Peugeot entered China through joint ventures that limited their ownership to 50%. This allowed them to gain access to the Chinese market while sharing technology with local partners. Over time, Chinese companies absorbed these technologies and, as foreign ownership restrictions eased—such as Tesla’s full ownership in 2018 and others by 2022—gained the upper hand. Meanwhile, European carmakers faced pressure to shift toward electric vehicles after the Dieselgate scandal, while Chinese manufacturers were already preparing for this transition. This shift has led to a reversal in the balance of power in the automotive industry. Today, Chinese consumers have largely stopped doubting the quality of their own products, much like Europeans once did with "Made in China" goods. The domestic market is now flooded with local brands, and traditional foreign brands like Volkswagen and SAIC remain competitive mainly due to high production volumes and reliance on internal combustion engines. However, with the Chinese market growing more slowly, these companies are now looking to export their excess production. This explains the recent rise of Chinese car brands in Europe, Latin America, Russia, and Africa, with some using familiar names like MG to revive interest. A key strategy for Chinese manufacturers is the export of CKD (Complete Knock-Down) kits—sets of parts that can be assembled locally with minimal or no local components. This allows for fast and low-cost production and helps bypass European regulations. However, this method of assembly does not equate to manufacturing. Japanese automakers like Toyota have followed a similar path, starting production in countries like Brazil and later expanding into Europe. Now, Chinese companies are using underutilized European factories, with brands like XPeng, MG, Leapmotor, Chery, BYD, and Dongfeng planning or already using these facilities. These European factories, once underused, could regain activity. For example, MG plans to use a plant in Galicia, Spain, with a much smaller investment than the historic mega-factories of American automakers like General Motors or Ford. These projects are not fully integrated with local components but represent a middle ground. Similar projects include Ford partnering with Geely and Dongfeng using a Stellantis plant in Rennes, France. In the long run, European factories that can't adapt to new production models may close, a scenario not entirely new, as seen during the 2008 financial crisis. Volkswagen has considered closing four of its plants, though it currently resists partnering with Chinese brands on this issue. Stellantis, the European automaker formed by the merger of Fiat Chrysler and PSA, aims to keep its 12 plants operational, but this depends on its ability to assign new models and partnerships to these sites. Unlike the 1980s, the European Union does not require foreign automakers to partner with local manufacturers. Current collaborations, like Ford and Geely’s project, are more like temporary alliances than long-term partnerships. Both sides benefit in the short term, but the future of such projects remains uncertain. The Ford-Geely project, for instance, plans to build a compact SUV in Spain using a Chinese platform, with a launch expected by 2029. This kind of industrial integration takes years, not months. Chinese manufacturers have not yet made a strong push into the North American market, where the Big Three—Ford, General Motors, and Chrysler—still dominate, along with Japanese and Korean brands. American tariff policies are unpredictable, and establishing a long-term presence would require local production with American suppliers, as Japanese automakers have done. Building a factory requires significant investment, and adapting models to American preferences, such as the size of pickups and large SUVs, is another challenge. So far, Chinese manufacturers have not demonstrated a strong presence in this market. In Europe, however, the adaptation required is less, and some models originally designed for China, like the Geely E2 or the BYD Dolphin Surf, are already gaining traction. For European consumers, this shift may bring more car choices and increased price competition. It also raises questions about the future of automotive manufacturing: can a car be branded Chinese but assembled by European workers using components made on the continent? Chinese manufacturers are moving quickly, while Europe struggles to respond with a unified strategy. Europe faces challenges with slow electrification, unclear subsidies, and bureaucratic hurdles, while its products often lack relevance and come at higher prices compared to Chinese alternatives.