I’d expect that they probably will re-hire some people overseas or similar where labor costs are cheaper.

I remember some analysis a while back from Deutsche Bank or someone like that that said that BYD had N% cheaper costs than Tesla, but that it had significantly cheaper costs than European automakers.

I also remember seeing some articles about German officials talking to Nigeria about some sort of trade stuff. Might be LNG, but also maybe manufacturing.

searches

Well, VW has something happening there.

https://www.assemblymag.com/articles/99082-volkswagen-to-launch-e-tractor-manufacturing-in-nigeria

German automaker Volkswagen has announced plans to establish an e-tractor manufacturing plant in Nigeria. This initiative aims to enhance agricultural mechanization in the country and signifies Volkswagen’s renewed confidence in Nigeria’s economy.

Volkswagen has been expanding its presence across Africa, recently creating a dedicated “Sub-Saharan” region to oversee operations. The company already has manufacturing and assembly facilities in South Africa, Kenya, Rwanda, and Ghana. A similar e-tractor initiative, the GenFarm Project, is already underway in Rwanda, providing sustainable mechanized farming solutions.

Volkswagen’s return to Nigeria marks a significant milestone, reinforcing the country’s potential as a key player in Africa’s growing automotive and agricultural sectors.

https://infotrustng.com/volkswagen-reopens-assembling/

Volkswagen Reopens Assembling Plant In Nigeria After 20years

A statement by the Stallion Group, which quoted Ratz Wolfgang, leader, Volkswagen Group’s delegation from Germany, added that the plant has rolled out the first set of vehicles, which includes Passat, Jetta, CC and Amarok models from the rejuvenated plant.

“Today marks the revival of the assembly of Volkswagen vehicles in Nigeria. Volkswagen has returned to Nigeria to continue a long history that began in the 1970s,” Wolfgang said in the statement.

EDIT: Yeah. According to this, VW also has relatively high labor costs compared to other European automakers:

https://www.reuters.com/business/autos-transportation/high-wage-germany-vws-labour-costs-outstrip-competition-2024-11-20/

Part of the reason the company spends more on labour is that it makes many components, and software, in-house, Stifel analyst Daniel Schwarz said. But pressure on margins from China means the company needs to cut fixed costs.

Germany, where Volkswagen employs nearly 45% of its workforce, has the highest labour costs of any passenger car industry worldwide, averaging 62 euros ($66) per hour in 2023, up around a third from a decade ago, according to the German autos association VDA.