Chinese car manufacturer Chery kicks off production in Barcelona
Spanish Prime Minister Pedro Sánchez sees the partnership between Chery and Ebro-EV Motors as a “symbol” for the reindustrialisation of Catalonia and Spain as a whole. This brings life back to the industrial area in the “Zona Franca” industrial and logistics district. Nissan ceased production there three years ago, which was a serious setback for Barcelona as a business location. Thousands of jobs were lost as a result in the middle of the pandemic. The site has a long tradition, as it was previously used for decades by Spanish commercial vehicle manufacturer Ebro, whose brand is now to be revitalised.
The joint venture between Ebro-EV Motors and Chery is set to create around 1,250 jobs. The joint venture aims to produce 50,000 vehicles per year by 2027, rising to 150,000 units per year from 2029. The assembly of vehicles from the Chery brand Omoda will be the first to be ramped up this year, but no specific model has yet been named. An electric all-wheel drive pick-up from the EV Motors brand Ebro will follow at the year’s end. The partners intend to invest 400 million euros in the revitalisation of the former Nissan plant.
For years, the central and regional governments had been trying to create a centre for electromobility in the “Zona Franca”. After several visits to China and lengthy negotiations, Ebro-EV Motors, which holds the majority stake in the joint venture, and the Catalan regional government finally decided in favour of Chery. Reuters had already reported on the negotiations in mid-April, suggesting that Chery could build electric cars at the former Nissan plant through such a partnership.
Chery’s investment is the second major investment by a Chinese company in its own plant in Europe in a short space of time. Previously, the electric car manufacturer BYD had sealed a major project in Hungary. SAIC, which currently only uses its British MG site for research and development, could soon follow suit but would like to manufacture in continental Europe again. A piquant detail in the case of BYD: this Chinese company was also rumoured to be interested in the Ford plant in Saarlouis, but BYD has also decided against a takeover.
Chery announced its launch in Europe last year – with several brands and drive types. Chery’s first electric car, the Omoda 5 EV, is set to be launched in Germany in the first half of 2024 under the Omoda brand. Jaecoo is an off-road brand that is set to bring Land Rover-style SUVs to the market. The compact SUV Jaecoo 7 and the larger Jaecoo 8 have also been announced for launch in Europe. No further details of the technology have yet been released.
“Ebro is the first company to enter into a joint venture with a Chinese automotive company. Chery strengthens its European presence by manufacturing vehicles in the Zona Franca of Barcelona,” said Pedro Calef, CEO of Ebro, adding: “This joint venture will study the creation of an R&D center in Barcelona for certifications in the European market in the future. Ebro and Chery are totally committed to this plant. Today, we start on a brilliant path, and our goal is to produce 150,000 vehicles in 2029.”
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