The collaboration between Chery and EV Motors, its Spanish partner, will take place in a former Nissan factory, closed in December 2021. This new project, estimated at 400 million euros, should not only revive this underused infrastructure, but also create up to 1,250 jobs.
Chery’s offensive in Europe
The announcement was made in the presence of Pedro Sanchez, the Spanish Prime Minister, who underlined the importance of this project in the framework of the reindustrialization of Spain and its transformation into a central “hub” for the production of electric vehicles (EVs) in Europe.
In addition to the production of models like the Omoda 5 and later the Jaecoo 7, Chery and EV Motors plan to relaunch the Spanish brand Ebro, which disappeared from the market in 1987. The creation of this new factory comes as the price war rages in the electric vehicle sector. Chinese manufacturers, often accused of benefiting from unfair government subsidies paid by Beijing, are seeking to expand their footprint on the European market.
Faced with these tensions, the European Commission has opened an investigation to verify the legality of these subsidies, which could lead to the imposition of punitive customs duties on Chinese vehicles. We’re not there yet, but the threat is real.
In recent years, we have seen the emergence of dozens of local brands such as BYD, Zeeker, XPeng and Great Wall, which now compete with Tesla and other foreign manufacturers. Several of these companies are currently trying to strengthen their presence in Europe, where some already have sales points and research and development centers. They complain of facing unjustified obstacles, which they attribute to the requirements set by existing European manufacturers.
The Barcelona plant will not only be used to produce electric and combustion versions of various models, but will also mark the start of manufacturing under European license, which could potentially allow Chery to avoid future customs barriers imposed by the EU. This will also allow the manufacturer to benefit from eco-friendly bonuses reserved for vehicles produced on European soil (this is the case in France).
The old continent is seeking to strengthen its industry in the face of the challenges posed by China and the United States. With China as the world’s largest electric car market (the country accounting for 69% of global sales of new electric vehicles last December), Chery’s initiative represents an important step in diversifying European automobile production and reducing dependence on Asian imports.
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