Chery Auto Plans to Make Cars in Spain

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Chery Auto to Establish Car Manufacturing in Spain

Chery Auto, a Chinese automaker based in Wuhu, is set to make its entrance into the European market by initiating car production in Spain. This strategic move is part of Chery’s ambitious plan to introduce three brand-new models under each of its three brands within the upcoming two years. Although the company initially targeted the European market back in 2017, the plans were postponed at that time.

Expansion Strategy and Product Offerings

Jochen Tueting, the Managing Director of Chery Europe, expressed his beliefs to Automotive News Europe in January that Chery is determined to establish a significant presence in the European market, affirming that their endeavors will yield favorable outcomes. The automaker’s blueprint encompasses the rollout of a diverse range of gas-powered, hybrid, and electric models tailored to suit the varied preferences of European consumers. Currently, electric vehicles constitute only 12% of Spain’s auto market, falling short of the European average of 14%, whereas in Germany – a leading investor in electric vehicles – EVs account for a notable 25% of new car sales.

Production Deal in Barcelona

Spain’s Industry Ministry recently shared its optimism regarding the impending agreement to commence manufacturing operations in Barcelona, the capital of Catalonia. The formalization of this agreement is anticipated to transpire in the forthcoming days, following discussions held earlier this week between a Spanish delegation and Chery representatives in China. The negotiations primarily revolve around the potential acquisition of Nissan’s dormant factory in Barcelona, which was closed down in 2021 as part of Nissan’s cost-cutting strategies. The closure of the Barcelona plant resulted in the loss of approximately 1,600 jobs, with ensuing repercussions on as many as 25,000 additional jobs within the local economy.

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Market Developments and Economic Recovery

Furthermore, the Barcelona plant’s transition saw the involvement of Silence, an electric motorcycle company, as well as Spanish engineering groups EV Motors and QEV. EV Motors, assuming control of the facility, intends to manufacture EV trucks and vans under the Ebro brand in collaboration with Chery. Spain is concurrently launching two tenders to encourage EV manufacturers to seek €1.7 billion ($1.82 billion) in loans and grants to expedite the production of electric models. These initiatives are integral components of an economic recovery scheme reliant on European pandemic relief funds.

On a broader scale, Chery has engaged in discussions with Italy to establish an automobile production facility in the country. Notably, Italy’s electric vehicle sales presently constitute a mere 4% of the market share. Italy aims to bolster its national car production to a target of 1.3 million vehicles per year, a substantial increase from the figure of less than 800,000 recorded in 2023. Collaborative talks have also been held with Tesla and various Chinese automotive brands concerning potential car manufacturing arrangements within Italy.

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Chris Jones

Hey there! 👋 I'm Chris, 34 yo from Toronto (CA), I'm a journalist with a PhD in journalism and mass communication. For 5 years, I worked for some local publications as an envoy and reporter. Today, I work as 'content publisher' for InformOverload. 📰🌐 Passionate about global news, I cover a wide range of topics including technology, business, healthcare, sports, finance, and more. If you want to know more or interact with me, visit my social channels, or send me a message.
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