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Chery chooses Spain for the first arrival of a Chinese automotive group in Europe

Date: July 14, 2024 Time: 14:06:04

The automotive market anticipates with great expectation the arrival of the manufacturer Chery to Spain, which is expected to be announced in the coming days. Once completed, the landing of the Chinese group would mean the landing of the first group from this country’s motor industry in Europe.

Although there are still certain parts of the agreement to be closed to fully carry out the emergence of the Chinese firm in Spain, the most important points of this operation have already been made known, which would conclude with the installation of Chery in the former lands of Nissan in the Barcelona Free Trade Zone.

Who is Chery?

State-owned Chery Automobile was founded in 1997 and focuses its business on new technologies and innovation. Headquartered in the city-prefecture Wuhu, the firm has a history of more than two decades of development and a strong presence in Europe and Latin America, with a sales and service network that reaches more than 80 countries and regions, according to the information. . available on their website.

Over the past two decades, Chery has established R&D centers in China, Germany, the United States and Brazil and has become the first Chinese automobile firm to export complete vehicles, CKD parts, engines, manufacturing technology and equipment. . for the global market.

One of its brands, Omoda, has chosen Spain as the first market in Europe, from where it wants to begin its expansion throughout Europe. The Spanish subsidiary, Omoda Spain, is deploying its own network of official dealers.

Where will you set up the factory and who will you negotiate with?

The Chinese company has been negotiating its implementation in Barcelona for months with those responsible for reindustrializing the old Nissan plant in the Free Zone, the Hub Factory, which is now led by Btech, owned by EV Motors. The Ministry of Industry and the Generalitat have also played a relevant role in the negotiations, which were part of Nissan’s reindustrialization table along with the management of the Japanese company and the unions of former workers.

If the agreement is closed, Chery will assemble its electric vehicles in the former Nissan facilities, located in a space of about 300,000 m2 in the Barcelona Free Trade Zone, a highly sought-after space for any economic activity due to its proximity to the airport and the Barcelona’s port.

What activity will you carry out in the Free Zone?

Sources familiar with the negotiations indicate that Chery would begin by assembling its Omoda 5 model. The vehicle parts, disassembled at origin, would travel from China to Barcelona, ​​​​where it would be finished assembling.

The company would also have apparently agreed to carry out the entire manufacturing process of these models in the Catalan plant shortly after, which would have a much greater economic impact on the territory since it would require working with local suppliers. Later, it would also consider producing two models of electric vehicles from the Ebro brand, owned by Btech.

Impact on employment

The landing of the Asian group in Barcelona is key to guaranteeing the Hub Factory project to revitalize the Free Zone, on which some 600 former Nissan workers depend, who lost their jobs when the Japanese multinational abandoned Barcelona at the end of 2021.

After exhausting unemployment, these workers are now following training courses and receiving a salary of around 1,500 euros until October. The vehicle production activity carried out in the Free Zone could lead to the creation of a million jobs, according to some sources.

Omoda calls for an institutional event at the highest level

Although the agreement has not yet been closed, Omoda Spain has already called an institutional event at the highest level for next April 19 in the Catalan capital to announce the industrial operation and give details of the investments. Although he has not detailed the content, he has assured that it will be “historic” and that it will consist of an “investment signing ceremony” with the presence, among others, of the President of the Government, Pedro Sánchez.

End to Nissan’s long reindustrialization process

Chery had already shown interest in the old Nissan factory, located on a plot managed by the Barcelona Free Zone Consortium (CZFB), but it ended up being left out of the reindustrialization process that began in 2022. The reindustrialization table finally commissioned the revitalization of the space to Hub Factory, in alliance with the Australian company Goodman, after the Chinese company Great Wall Motors, the favorite for all parties, had distanced itself from the project a few months earlier.

Financing problems later interfered with the implementation of the industrial project and that was when Chery reappeared as a guarantee for the reconversion of the Free Zone.

Chinese cars climb the sales charts

Chery’s landing in Spain occurs at a time when Europe is experiencing a massive incursion of cars made in China, especially electric, with much more competitive prices and good performance. Brands like MG have experienced explosive growth and are climbing positions on best-seller lists.

The president of the European Commission herself, Ursula von der Leyen, has even announced the opening of an investigation into the alleged public aid that Chinese companies would have received.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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