Production of Chinese cars in Europe begins in Spain
China’s Chery and Ebro-EV Motors plan to produce 150,000 vehicles in Barcelona in 2029 and employ 1,250 people. $400 million will be allocated for the restoration project of the old Nissan plant.
If there is one feature that defines the current Chinese auto industry, it is its speed in adapting or responding to challenges. AND When their brands were not even commercially consolidated in Europe – with a few exceptions – they had already implemented the second part of the plan: construction of factories on the Old Continent.
Yesterday, the Chery group and the Spanish Ebro (owned by EV Motors) officially sealed the agreement they reached a few days earlier. At an event organized by President Pedro Sánchez, It has been confirmed that production will begin in a few months. In addition, key data was identified: 50,000 units in two years; 150,000 in 2029; creation of 1,250 jobs and investments of 400 million euros, adding government aid.
Have an already equipped plant and Having the first cars assembled from large parts shipped directly from China will speed up this industrialization. – assured Pedro Calef, CEO of Ebro. And this will make Chery the first Chinese manufacturer to produce passenger cars in large volumes in Europe. Because his compatriot BID I’ve driven buses for years and In December 2023, he chose Hungary. build a plant for the production of passenger cars, but it will not be ready until the end of 2025 or the beginning of 2026. They talk about a capacity of up to 300 thousand units.
Other interested manufacturers
Not counting the already announced battery factories like the one in Imagine in Extremadura, These two movements are the first, but not the only ones. MG (brand owned by Saic), has been exploring various places, including Spain, for some time; Donfeng is in talks with the Italian government, which also ditched Chery, to produce about 100,000 cars a year and GWM (Great Wall Motors) implements a scenario lasting four to five years, “without excluding Spain.”
Although the curl could have come from the outside Jump Motors, that, thanks to its “joint venture” with Stellantis, it will be able to assemble its electric cars in Poland or Italy, in factories of a consortium led by Carlos Tavares. Yes, the same leader who last week warned the Italian government that it would have to face consequences that could lead to the closure of factories if they approved or assisted Chinese industrialization in the country.
More reputation, no tariffs
Their strategy is clear. On the one hand, this will allow them protect yourself from investigations like the one carried out by the EU opened in September to illegally subsidize its cars and could end up with additional tariffs. They already pay 10% to save money, although they will also assume higher production and labor costs. On the other hand, manufacturing in the Old Continent will bring them closer to potential customers, as well as increase their reputation and fame.
For example, in Catalonia. “Today the sun rises” for former Nissan employees, said the Prime Minister. “We have achieved reindustrialization one of the most important factories in Catalonia in the last 80 years” added his Catalan colleague Pere Aragones. Because it will be developed directly at the plants that Nissan had in Barcelona, which were announced to be closed at the height of the pandemic and which produced their last unit in December next year after almost 45 years of activity. Their departure left 3,200 workers in limbo, of whom 1,250 could not be relocated at this time.
Revival of the Ebro
Moreover, the signed pact will mean a second renaissance: the rebirth of the symbolic Ebro, which would have turned 70 this year after being absent for more than 30 years. Its CEO said that the agreement with Chery is considering the creation of two “joint ventures”, both with a predominant Spanish participation. The first, commercial, will be used on the market new Ebro cars, which will also be produced in Barcelona. For starters, two SUVs, one mid-range and one top-end, both hybrid. Two more will appear in 2025, always developed using Chery technology. At the same time, the development of a 100% electric pickup truck, presented at the Barcelona Motor Show in 2023, continues.
The second leg is industrial. Thus renamed The Ebro plant will start producing Omoda cars in a few months. in particular, the Model 5 in combustion engine and 100% electric versions. The first Ebro car will be launched before the end of the year, followed by other cars such as the premium SUV Jaecoo 7 (another Chery brand).
At the beginning, being a partial assembly, Only 150 jobs will be created, although the number will gradually increase as the plant takes over the rest of its production processes. Local suppliers will also be added. In addition, it is planned to create a research, development and innovation center to adapt cars to the European market and tastes.
Although the icing on the cake was Zhang Guibing, vice president of Chery International and the one who signed the agreement with Kalef. “This is a strategic cooperation between the two countries that will allow us to further promote the high quality of the Spanish automotive industry,” he said, adding that Once they reach the required scale, the plant will become “a major export site for Chery to the rest of the world.” Last year Chery produced almost 1.9 million cars, of which 940 thousand were exported.