Chery about producing cars in Spain, not Italy!

The agreement between Chery and Catalonia would be formalized in the coming days

Chinese carmaker Chery is close to reaching an agreement to start making cars in Spain, the Spanish government and main negotiator EV Motors said on Tuesday. This will then be its first production site in Europe. Unless Italy beat Spain to the post…

Speaking in a statement, the industry ministry said it was confident that an agreement to start production in Barcelona, ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​for on the north-eastern,

The agreement came after “positive discussions” between Spanish delegations and Chery this week in China, said a spokesman for Barcelona-based EV Motors.

Catalonia’s regional government said Tuesday its chief business officer will travel to China on Wednesday to meet with Chery executives.

The restoration of the Nissan website and the employees at the heart of the matter

Chery started selling its cars in Spain at the beginning of this year. Discussions focus on the possibility of the manufacturer producing cars at a plant that Japanese carmaker Nissan closed in 2021. The operation would enable the restoration of part of the 1,600 direct jobs lost.

Nissan’s main factory in Barcelona was sold in part to Spanish electric motorcycle manufacturer Silence and engineering groups QEV and EV Motors, which planned to turn it into an electric vehicle hub.

Last March, EV Motors acquired full control of the company. The company played an important role in the discussions with Chery as it would operate under the umbrella of the center. EV Motors also plans to develop its electric utility vehicles and vans under its Ebro brand, which could involve possible production and commercial deals with Chery, a source familiar with the matter said, without elaborating.

Italy is also looking at Chery

However, last March, Reuters reported that the Italian government was in talks with Chery as part of its efforts to attract the country’s second largest car company, with Italy in particular trying to end Stellantis’ industrial monopoly. area.

Italy’s Industry Ministry has no information on how Chery chose Barcelona for its new factory, an Italian government official said Tuesday. According to an industrial source, Chery is still in contact with the Italian authorities but has received few comments, confirming at the same time that discussions are ongoing with Spain.

Public support from Spain?

Public support from the Spanish state could help tip the balance for Catalonia. Madrid wants to be “discreet” on the matter, the Ministry of Industry refused to say whether Spain gave public support to Chery.

Spain will open two calls for tender this year to give companies a total of 1.7 billion euros in loans and grants to increase production of electric vehicles. The procedure will be carried out under the so-called LOSS incentive scheme which uses EU Covid aid funds.

Our opinion, for leblogauto.com

These talks are taking place amid trade tensions between China and the European Union. It is currently investigating whether Chinese electric car manufacturers are benefiting from government subsidies in violation of competition laws.

Placing production capacity in Italy or Spain, where sales of electric vehicles are low, will be part of Chery’s strategy to sell hybrid and fully electric vehicles as well as vehicles with combustion engines.

Sources: Reuters

Summing up

While talks between the Italian government and Chinese manufacturers with a view to establishing an industrial zone raise the eyebrows of Carlos Tavares, the boss of Stellantis, it is Spain’s turn to line up to attract Chinese car groups. Chery would be very interested.
Discussions focus on the possibility of the manufacturer producing cars at a plant that Japanese carmaker Nissan closed in 2021. The operation would enable the restoration of part of the 1,600 direct jobs lost.

Public support from the Spanish state could help tip the balance for Catalonia. Madrid wants to be “reasonable” on the subject.

Spain will open two calls for tender this year to give companies a total of 1.7 billion euros in loans and grants to increase production of electric vehicles.