Chinese carmaker Chery will open its first plant in Europe in Spain

At the end of 2024, the first models of Omoda 5, Chery’s premium electric SUV, will leave the site. But the Chinese state-owned group, founded in 1997 and based in Wuhu, is not embarking on this journey alone: ​​it is forming a joint venture with Catalan automaker Ebro EV Motors, which will own the buildings. The group born in 1954 and many in this venture has risen from its ashes and is focusing on electric vehicles. The first Ebro electric model will be released in the last quarter of this year. Both manufacturers should be able to rely on Nissan assembly lines. Several Ebro vehicles, including electric pick-ups and vans, are already based on older models from the Japanese manufacturer.

«I am pleased with this agreement», welcomed Jordi Hereu, Minister of Industry of Spain, who received Chery managers in Madrid. “The plant will contribute to the industrial regeneration of Barcelona and will create jobs in a country that has a long tradition in the automotive industry, as Spain is the second largest country in Europe and the eighth largest in the world. “. The agreement, resulting from long negotiations between the Spanish authorities and the management of the Chinese group, offers the opportunity to create 1,600 jobs. 600 of the 2,500 former Nissan employees will be taken over by Chery, which did not want to disclose the amount of the investment .

From assembly to manufacturing

The world’s largest Chinese car exporter, Chery, which sold 1.88 million vehicles in 2023, already has around ten factories in Russia, the Middle East and South America, as well as China. This installation in Barcelona represents a major step in the development of the Chinese manufacturer. Present in 40 countries, Chery wants to conquer the European market and has chosen Spain as the gateway for production and sales. The country is more open to foreign brands than France and Germany where consumers remain attached to their national manufacturers. After Spain, by the end of the year, Chery will sell its cars (Omoda starting price: 29,000 euros) in Italy, then Poland and England.

Initially, the Barcelona site (300,000 square meters located between the port and the airport of the Catalan capital) will only be an assembly plant: the parts will travel in semi-assembled equipment from China to Spain. But in the medium term, the entire manufacturing process should be done on site, which will be of great benefit to subcontractors in the region. About 50,000 cars could leave the junction of the old Nissan factory every year.

The signing of the agreement is a relief for the Catalan government which has not made any effort for four years: giving new life to the Nissan area and attracting the car giant has been a priority in the historic industrial area.

Chery is the second Chinese manufacturer to announce its arrival in Europe: BYD, specialized in electric vehicles, will build its first car assembly plant in Hungary by 2027.