Chery may start production in Spain

Chinese carmaker Chery may soon open its first production site in Europe. The deal with Chery is nearing completion, according to a statement from the Spanish government and Barcelona-based EV Motors, which is heavily involved in the negotiations. The Spanish Ministry of Industry said in a statement that it is confident that the start of production in Barcelona can be formalized soon. The deal is the result of positive discussions between the Spanish delegation and Chery in China, an EV-Motors spokesperson said. Chery itself previously did not comment on the possible deal.

In particular, the talks are about restarting production at the former Nissan plant, which the Japanese carmaker closed in 2021. 1,600 workers lost their jobs. The contract with Chery can provide a new professional perspective. The former Nissan production facility had been transferred in parallel to Spanish electric motorcycle manufacturer Silence as well as to mechanical engineering groups QEV and EV Motors, who wanted to convert the plant into an electric vehicle facility.

In March, EV Motors took full control of the hub company and therefore also played an important role in the discussions with Cherry, as the Chinese company would operate under the hub’s umbrella. EV Motors also plans to make electric pickups and vans under its Ebro brand, which could lead to more commercial and production deals with Chery, according to a person familiar with the matter.

Spain’s Industry Ministry declined to comment on possible government aid for Chery. In total, Spain will launch two tenders for companies this year and provide loans and grants totaling 1.7 billion euros for the production of electric vehicles. The PERTE program stands for “Strategic Project for Economic Recovery and Transformation” and uses EU support for the corona crisis. Chery started selling cars in Spain at the beginning of this year. The production location may be in line with the Chinese company’s strategy of relying on a mix of combustion engines, electric vehicles and hybrid drives, as sales figures for electric vehicles in Spain are poor.

Sources: Reuters – China’s Chery is closing in on a deal to make cars in Spain / Electricity – PERTE: Spain eases access to 2 billion euro financing