Gasgoo Munich- What shook the global auto industry this week?
Trump visits China with 18 U.S. business leaders in tow
From May 13 to 15, Trump kicked off a three-day visit to China. It marked the first face-to-face meeting between the two nations' leaders since last October's talks in Busan, and the first U.S. presidential visit to China in nine years.
Trump was accompanied by 18 U.S. business executives in Beijing, representing firms across technology, finance, aviation, and agriculture:
In tech, the delegation included Tesla CEO Elon Musk, Apple CEO Tim Cook, and leaders from semiconductor giants like Qualcomm and Micron Technology;
Financial leaders hailed from Wall Street titans such as Citigroup, Goldman Sachs, and Blackstone;
Boeing and Cargill rounded out the group, representing the aviation and agriculture sectors, respectively.
Notably, Nvidia CEO Jensen Huang—added as a last-minute recruit—boarded Air Force One in Alaska.
Image credit: Nvidia
The next day, sources revealed that Washington had approved roughly 10 Chinese companies to purchase Nvidia’s H200 artificial intelligence chips—its second most powerful—though no deliveries have been completed yet. With this major tech deal stalled, Huang is using this week's visit to seek a breakthrough in the Chinese market.
Lenovo confirmed to Reuters that it is "one of the companies approved to sell H200 chips in China under Nvidia’s export licensing framework." Nvidia, Alibaba, Tencent, ByteDance, JD.com, and Foxconn all declined to comment.
Gasgoo Take: The iron curtain of geopolitics cannot hold back the tide of commercial interest. Huang’s last-minute boarding proves that the thirst for computing power is ultimately cured by the market.
Luxshare Precision plans to acquire 59.5% stake in BWI
On the night of May 10, BeijingWest Industries (02339.HK)—suspended from trading for some time—disclosed a major change in shareholding. Citing a notice from controlling shareholder BeijingWest Industries Group, the company revealed that Luxshare Precision (002475.SZ) signed a conditional acquisition agreement on March 30 to purchase the 59.5% stake in BWI indirectly held by the group.
Image credit: BWI announcement
Once finalized, Luxshare will indirectly control a majority stake in BWI, becoming the legacy auto parts maker's ultimate controlling shareholder. Gasgoo contacted BWI executives to ask if the deal would lead to business adjustments, but had received no response by the time of publication.
On the regulatory front, Luxshare has applied to the China Securities Regulatory Commission for a waiver to avoid a mandatory general offer triggered by crossing the ownership threshold. Regulators have signaled in principle their intent to grant it. The BWI board moved to reassure investors, stating that the potential change in control would not materially impact existing operations. Buoyed by the news, BWI shares resumed trading on the morning of May 11.
Gasgoo Take: A consumer electronics giant moves upstream. Rather than fighting it out in a saturated market, it’s better to be the one "selling shovels" in the core components race.
Dongfeng Peugeot-Citroën to build global Peugeot and Jeep EV models
On May 15, Stellantis and Dongfeng Motor Group announced a strategic partnership. Leveraging the Wuhan plant of Dongfeng Peugeot-Citroën (DPCA), the two will jointly produce multiple new energy vehicles under the Peugeot and Jeep brands starting in 2027, targeting global markets.
Initially, the Wuhan facility will introduce two new Peugeot EVs. These models will carry forward the design language from the brand’s latest concept cars unveiled at the 2026 Beijing Auto Show, catering to local demand while serving export markets to fuel Peugeot’s global growth.
Image credit: Dongfeng Peugeot-Citroën
Starting in 2027, the same plant will also mass-produce two Jeep-branded electric off-roaders, aiming squarely at the global off-road segment.
Total investment exceeds 8 billion yuan (roughly 1 billion euros), with Stellantis contributing about 130 million euros. The project also has clear backing from automotive industry policies in Hubei province and Wuhan.
Gasgoo Take: The joint venture model has flipped. DPCA is shedding its image as a struggling French partnership to become a Chinese springboard for Stellantis’ lightweight, global electrification strategy.
Report: BYD in talks with Stellantis to acquire European plants
BYD Executive Vice President Stella Li told Bloomberg that the company is in discussions with Stellantis and other European automakers to take over idle or underutilized factories across the continent.
The world’s largest EV seller is currently evaluating potential deals, with target sites likely located in countries such as Italy.
Asked whether BYD had inspected Stellantis’ underutilized Cassino plant in central Italy, Li responded that the company has toured "numerous factories" in Europe.
Image credit: BYD
Italy has emerged as a key location for BYD’s European factory plans, while France—known for lower electricity prices—remains attractive in the long run.
As for partners, Li revealed: "We’re not just talking to Stellantis; we’re communicating with other companies as well. We’re looking for available factories in Europe because we genuinely want to utilize this idle capacity."
Li also noted that BYD prefers operating its European plants independently rather than through joint ventures, simply because it is "easier."
Gasgoo Take: With trade barriers rising, BYD is buying factories to establish a foothold. By revitalizing existing assets instead of building from scratch, it turns rivals’ burdens into bridgeheads.
Report: XPENG in talks to acquire Volkswagen’s European plant
Chinese EV startup XPENG is in talks with Volkswagen and other automakers to acquire a factory in Europe, the Financial Times reported.
Previously, Volkswagen Group CEO Oliver Blume suggested the company might introduce models developed in China to Europe, or even share capacity at its European plants with Chinese partners.
Image credit: XPENG
As it cuts costs and contracts its German operations, Volkswagen is currently exploring alternative uses for its plants in Dresden and Osnabrück.
However, Volkswagen Brand CEO Thomas Schäfer stated at the FT Future of the Car Summit that no automaker has expressed interest in taking over these German sites slated for closure, dismissing the reports as "pure nonsense."
Elvis Cheng, XPENG’s managing director for Northern Europe, said at the same event that his company is in discussions with Volkswagen to determine "whether it is possible to find a suitable factory site in Europe."
Volkswagen currently holds about 5% of XPENG and has three joint venture partners in China: SAIC, FAW, and JAC. None of these partners have manufacturing facilities in Europe.
The report added that XPENG is also considering building a new plant in Europe. "We don’t believe all existing factories can meet the needs of our latest or future products," Cheng told the FT, adding that some of Volkswagen’s facilities are "a bit older."
XPENG declined to comment on the report.
Gasgoo Take: The roles of master and apprentice have shifted. Volkswagen’s idle capacity offers XPENG the perfect springboard to expand overseas.
Magna China President Wu Zhen moves to International VP role; Li Yaxu succeeds
On May 12, Gasgoo learned that former Magna China President Wu Zhen has relocated to Europe for personal reasons. Effective May 11, she became Magna International’s vice president, focusing on helping Chinese automakers expand globally. On the same day, Li Yaxu, a veteran of nearly 20 years at Magna, officially took the helm as China president, while retaining his role as vice president of the Body and Chassis division.
Wu’s appointment carries significant weight. As Chinese brands pivot from simply exporting vehicles to moving their entire value chains overseas, her base in Europe and seat on the global management team will allow her to more agilely mobilize global manufacturing and engineering resources. This provides Chinese brands with systematic support in localized supply chains and regulatory compliance.
Li Yaxu, his successor, is a versatile commander risen from the front lines. A Jilin University graduate, he joined Magna in 2005 and has held key roles including engineering and operations director for Body and Chassis in China, and general manager of the Changchun plant. Since becoming vice president of the division in China in January 2020, he has spearheaded strategy and execution, building deep expertise in lean operations, customer integration, and team management. By continuing as vice president of Body and Chassis while leading China, Li ensures a tight coupling between core technology and overall strategy—sharpening the decision-making loop in critical areas like frames, body-in-white, and chassis modules.
Gasgoo Take: A top Tier 1 supplier is moving a "China hand" to headquarters. This isn’t just a reshuffle—it’s a strategic move to capture the massive volume of orders coming from Chinese automakers as they go global.
Japan’s motor giant Nidec accused of large-scale data falsification
The world’s largest precision motor manufacturer, Nidec, stated in a May 13 release that it uncovered multiple instances of misconduct involving product quality falsification, the Nikkei reported. The issues affect quality control for motors and other products, including unauthorized changes to materials, manufacturing processes, and designs. The company plans to establish a special investigation committee of external experts to probe the matter.
Image credit: Nidec
The company added, however, that "no issues have been identified so far that would immediately affect product functionality or safety." Nidec has begun reaching out to customers to explain the situation and will conduct a comprehensive quality review. It aims to finalize and announce a remediation plan and follow-up arrangements for the compliance breaches on May 13.
The news sent Nidec’s Tokyo-listed shares down as much as 18% in intraday trading. The once-revered Japanese manufacturer has recently been mired in multiple crises, including an accounting scandal and the departure of its founding figure.
On May 12, Nikkei reported that Nidec is suspected of more than 1,000 quality violations, with issues surfacing across multiple divisions including appliance motors and automotive components. What began as an accounting scandal has now spread to the production system’s compliance layer.
Gasgoo Take: The myth of Japanese "craftsmanship" has been shattered again. When financial holes can’t be filled, production compliance becomes the price paid.
