The German Finance Minister, Lars Klingbeil, has publicly voiced his disapproval of Deutsche Bahn’s decision to procure 200 electric buses from Chinese manufacturer BYD, escalating a simmering debate about industrial policy and national interests within Germany. Klingbeil, also the leader of the Social Democratic Party (SPD), expressed his frustration in an interview with the Neue Osnabrücker Zeitung, questioning the prioritization of foreign suppliers over domestic businesses.
“It’s unsettling that Deutsche Bahn, alongside a significant order for MAN buses, has opted to purchase additional electric buses from China” Klingbeil stated. He advocated for a “healthy form of location patriotism” underlining a preference for awarding contracts to German or European companies when viable alternatives exist. Klingbeil highlighted the presence of established, high-quality electric bus manufacturers within Germany itself, specifically citing Mercedes and MAN, as evidence of the country’s existing capabilities.
The procurement, announced last week as the largest bus order in Deutsche Bahn’s history, encompasses over 3,300 hybrid and electric buses, with the majority slated for delivery by Munich-based MAN. The inclusion of the BYD order, however, has drawn political fire. While these BYD buses are earmarked for production in Hungary, the sourcing from a Chinese company has raised concerns about dependency on foreign supply chains, particularly in a strategically important sector like public transportation.
The situation reveals a growing tension within the German government regarding economic sovereignty and the balance between securing competitive pricing and fostering a robust domestic industrial base. Critics argue that prioritizing cost savings through foreign sourcing risks undermining Germany’s own manufacturing sector and its ability to innovate within the crucial green technology arena. The incident has reignited the discussion around “Made in Germany” and the long-term implications of relying on foreign entities for vital infrastructure components, setting the stage for potential policy adjustments and increased scrutiny of future procurement decisions by state-owned enterprises like Deutsche Bahn.