Chery Automobile prefers Spain to Italy: China is ready to invade Europe with a new fleet

Chinese car manufacturer Cherry is ready to open the factory Spain, its first in the European region. On Thursday 19 April the government of Madrid and the Asian group should formalize the investment that will be supported by public incentives. An assembly plant is expected to be built nearby Barcelona, where – a sign of the times – the Japanese Nissan plant once stood. Electric cars produced by Chery in Catalonia with the brand Omoda e Jack then they will be shipped to all European markets, including Italy.

Investments in Italy are far from over

Chery was one of the Chinese companies suspected of investing in Italy. Indeed, in recent weeks, some rumors had shown the group as a possible candidate to take the role of the second manufacturer in the country together. Star. The decision to invest in Spain makes this prospect less likely. It is not clear what reasons persuaded Chery to favor Spain, although sources were cited by Reuters they claim that, although communication has not been interrupted, the Italian government has made few comments on the Chinese company’s request. On the other hand, in recent months the Minister of Trade and Made in Italy, Adolfo UrsoHe has repeatedly stated that negotiations are ongoing with many foreign car manufacturers, among which will also be seen. MG e Tesla. None of these talks, however, have so far led to concrete results.

Spain, Europe’s automotive powerhouse

The choice of Chery strengthens the position of Spain, which in recent years has risen to the top of the list of countries that produce cars in Europe. Last year the factories of the Iberian country burned 2.4 million cars, three times that of Italy and twice that of France. Despite not having a single “local” house, the country has managed to attract five foreign ones thanks to infrastructure, incentives and government support policies. Chery would be sixth, confirming Spain’s role as Europe’s largest car manufacturer, second only to Germany.

Because Barcelona is the EU gateway for Chinese cars

The arrival of Chery also confirms that Spain is becoming the European gateway for cars produced in China. In 2023, ships arriving at the port of Barcelona unloaded more than 246,000 vehicles, more than a third of which came from China and were destined partly for the domestic market, but above all for export to other EU countries. Cars with the MG, Dongfeng, XPeng and Tesla brands were therefore exported to Catalonia, which sends the majority of cars built in the Shanghai gigafactory to the Region. Instead of finished cars, Chery will now have components delivered to the port of Barcelona that will be assembled on site in the new factory. However, the difference is not small.

Risk of obligations

Chery’s investment in Spain represents a high level of quality because, after that of Byd in Hungary, it is the second attempt of a Chinese company to place its production in the European continent. The reason for the election depends not only on the increase in sales of Chinese cars in Europe – whose volume, in fact, is still modest – but above all on the desire of Asian manufacturers to avoid the risk of new tariffs on imports. Accusing Beijing of unfairly subsidizing the expansion of its manufacturers, the European Union is considering imposing tariffs of up to 10,000 euros on the cheapest electric models from Chinese manufacturers. The assembly of components from China should avoid this risk, at least in theory and unless Brussels decides to imitate the United States by including cars produced with Chinese parts in tariffs or restricting them in purchase incentives.

Limited benefits for the respective industries

Even when they decide to produce directly in Europe, in fact, Chinese manufacturers continue to rely on suppliers from their country of origin for most of their equipment, which, moreover, is recognized worldwide as currently the highest in the automotive supply chain. of electricity. . This significantly reduces the impact of the investment of Asian manufacturers on the European territory because it brings little profit to the related industries, i.e. to all the companies surrounding the production of the final product: in the case of cars, think for example of retailers. seats, engine parts, gearboxes and so on.

Investment in cargo ships: a new ship arrives

The benefits of the arrival of Chinese manufacturers in Europe may be limited even for logistics companies and, in particular, for sea freight forwarders. According to the analysis of Know 24 HoursIn fact, the Chinese industrial system is preparing itself cargo ship transport vehicles in the Old Continent. Dragon currently ranks eighth in the world, with 33 motor transport ships, but the goal is to reach fourth place by 2028, behind Japan, Norway and South Korea. Chinese groups have already ordered 47 ships, a quarter of orders worldwide and buyers Saic Motor, the giant state-owned company that owns MG, BYD and Chery itself.

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