Chinese manufacturer Chery closes production of new cars in Spain. This is a novel – and also an obstacle for the German region.
Barcelona – In 2024, China’s largest car manufacturer Chery wants to offer electric and combustion vehicles in Germany for the first time through well-known dealers. Elsewhere in Europe, the manufacturer from the Middle Kingdom is at the forefront: in Spain, a joint venture was recently decided on that is intended to help the entire region to achieve economic status.
With the Ebro EV, the rebirth of the Spanish brand for commercial vehicles and off-road vehicles, Chery will breathe new life into a disused factory site in the Catalan capital of Barcelona.
Chinese manufacturer revives disused factory site in Spain
The Chinese manufacturer recently concluded its partnership with the Catalan company: Omoda (Chery) and Ebro products are produced together in the “Zona Franca” of Barcelona. This means that not BYD, but Chery will be the first Chinese car company to open a car production plant in Europe. The modernization is reported to cost 400 million euros, divided between public and private shoulders.
Earlier, delegations from both countries visited the potential partner company several times. Spanish Prime Minister Pedro Sánchez sees the agreement between Chery and Ebro-EV Motors as a sign of “industrial revitalization not only for the region of Catalonia, but for the whole of Spain.” The partnership brings new life to the “Zona Franca” industrial and transport district.
Chery Automobile is producing in Europe – from early to late 2024
A few years ago, the Japanese car manufacturer Nissan stopped production at the site, which was a huge blow to Barcelona at the time and cost thousands of jobs during the pandemic. Spanish commercial vehicle manufacturer Ebro used this location in the past, and the brand will now be revived with the help of its partner from the People’s Republic. High level politicians and business leaders were present at the ceremony in Barcelona.
There is not much time left to modernize the system: According to the CEO of Ebro, Pedro Calef, the production of the Chery Omoda 5, a medium model available with electricity and a combustion engine, is scheduled to begin in the fourth quarter of 2024. . Two SUV models from Ebro, which are based on the technical platform from Chery, have also been announced for the end of the year. Recently, the boss of Chery Europe GmbH explained IPPEN.MEDIAthat there is an advantage in terms of speed and flexibility compared to traditional car manufacturers from Europe and the United States.
Chery is doing the same to Ford: Spain instead of Germany
According to Frankfurter Allgemeine Zeitung (FAZ) Unfortunately, Chery’s investment is not good news for the Saarlouis region, which will still be in Ford’s hands until 2025: The American automaker has been in talks with the Chinese about taking it over as production nears its end. But despite the promise of government funding, no deal has been reached with the investor and thousands of workers face an uncertain future. Spain is also a beneficiary there: Ford is moving production of electric cars to Valencia, Spain.
The joint venture between Ebro-EV Motors and Chery Automobile is expected to create around 1,250 new jobs from 2029, the target production target is 150,000 units per year, which will be delivered to Germany, among others. (PF)
